Question
On March 1, LGE asks to extend its past-due $8,400 account payable to Tyson. Tyson agrees to accept $2,000 cash and a 180-day. 8%,
On March 1, LGE asks to extend its past-due $8,400 account payable to Tyson. Tyson agrees to accept $2,000 cash and a 180-day. 8%, $6,400 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 Record LGE's entry to extend its past-due $8,400 account payable by paying cash of $2,000 and issuing a 180-day, 8%, $6,400 note payable. Note: Enter debits before credits. Date: General Journal Debit Credit March 01 Accounts payable-Tyson Cash Notes payable-Tyson View general journal Record entry Clear entry
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