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On June 3, 20X1, Alaska State Company received a $5,000, 60-day, 12 percent note from Samuel Adams, a customer whose account was past due. The
On June 3, 20X1, Alaska State Company received a $5,000, 60-day, 12 percent note from Samuel Adams, a customer whose account was past due. The note was discounted on June 18, 20X1 at the Second State Bank and Trust. The bank charged a discount rate of 14%. Required: 1. Prepare the journal entries regarding this note. (Use 360 days a year. Round your answers to 2 decimal places.)
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