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On March 1, LGE asks to extend its past-due $2,400 account payable to Tyson. Tyson agrees to accept $500 cash and a 180-day, 8%, $1,900
On March 1, LGE asks to extend its past-due $2,400 account payable to Tyson. Tyson agrees to accept $500 cash and a 180-day, 8%, $1,900 note payable to replace the account payable. (Use 360 days a year.) (1) Prepare the March 1 entry for LGE. (2) Prepare the September 27 entry for LGE when it pays the note and interest to Tyson. View transaction list Journal entry worksheet 1 2 Record LGE's entry to extend its past-due $2,400 account payable by paying cash of $500 and issuing a 180-day, 8%, $1,900 note payable. Note: Enter debits before credits. Date General Journal Debit Credit 2,400 March 01 Accounts payable-Tyson Cash Notes payable-Tyson 500 1,900 View general journal Record entry Clear entry > Journal entry worksheet 1 2 Record LGE's entry for payment of the note and interest to Tyson. Note: Enter debits before credits. Date General Journal Debit Credit 1,900 122 2,022 September 27 Notes payable-Tyson Interest expense Cash Record entry Clear entry View general journal >
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