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On March 14, 2023, Sheridan Corporation agreed to allow its customer, Gouneau Ltd., to substitute a six-month note for the account receivable of $920 that
On March 14, 2023, Sheridan Corporation agreed to allow its customer, Gouneau Ltd., to substitute a six-month note for the account receivable of $920 that was unable to pay when it came due for payment. This means that Gouneau is basically borrowing $920 from Sheridan for sis. It was agreed that the note would bear interest at a rate of 6%. What journal entries would Sheridan make to record the substitution and payment of the note? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) On March 14, 2023, Sheridan Corporation agreed to allow its customer, Gouneau Ltd., to substitute a six-month note for the account receivable of $920 that was unable to pay when it came due for payment. This means that Gouneau is basically borrowing $920 from Sheridan for sis. It was agreed that the note would bear interest at a rate of 6%. What journal entries would Sheridan make to record the substitution and payment of the note? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)
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