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On August 8, A& R Enterprises sold merchandise inventory to UB and received a $30,000, 120-day, 15% note. If the note was dishonored but
On August 8, A& R Enterprises sold merchandise inventory to UB and received a $30,000, 120-day, 15% note. If the note was dishonored but the maker pays 30 days after and is charged additional 30 days' interest at 8%, you are to: a. state who is the payee and the maker of this note. 1 pt b. state how much money the maker now currently owes the payee due to the note being dishonored. Show your calculation. 2 pts c. now that the maker is making payment after the note was dishonored, state how much money the maker is to pay. Show your calculation. 2 pts d. What journal entry(ies) would have been different if payment was made on maturity date versus if payment was not paid on maturity date. 2 pts
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