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On March 30 , the company borrowed $2,400 cash from a local bank and signed a 10 percent note due in 2023. Interest is payable
On March 30 , the company borrowed $2,400 cash from a local bank and signed a 10 percent note due in 2023. Interest is payable each year on March 30. No adjustments were made at the end of the year. On October 30, 2020, company entered into a contract to deliver products to McDonald's over a period of two years beginning February 1, 2021. McDonald's agreed to pay in full $600 on February 1, 2021. company recorded the following journal entry on October 30,2020 : Accounts Receivable 600 Service Revenue 600 No adjustments or corrections were made as of December 31, 2020. 6 Companylailed to record bad debt expense amounting to $650 during fiscal year 2020
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