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On August 1, Paver Ltd, accepted a $27,400 note from Borges Ltd. in settlement of an account receivable. The note bears interest of 6% and
On August 1, Paver Ltd, accepted a $27,400 note from Borges Ltd. in settlement of an account receivable. The note bears interest of 6% and both principal and interest are due in two months, on October 1. Interest on the note was accrued on August 31 and on September 30. On October 1. Borges paid the note, including the accrued interest. Prepare the journal entries required to record the above transactions. (List all debit entries before credit entries. Credit account titles are outomatically indented when the amount is entered. D0 not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Current Attempt in Progress Penny Worth Ltd sells merchandise on April 1.2020, to Red River Enterprises in return for a 12-month, 9\%, $13,200 note, with interest due at maturity. The company uses a perpetual inventory system and the cost of the inventory sold was $7,920. Penny Worth has a December 31 year end and adjusts its accounts annually. Prepare the journal entries that Penny Worth will record with regard to this note from April 1, 2020, until the note matures on March 31. 2021. (List all debit entries before credit entries. Credit account titles are outomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the omounts
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