Question
On May 2, Blossom Company lends $8,400 to Chang, Inc., issuing a 6-month, 12% note. At the November 2, maturity date, Chang indicates that
On May 2, Blossom Company lends $8,400 to Chang, Inc., issuing a 6-month, 12% note. At the November 2, maturity date, Chang indicates that it cannot pay. Parts b and c are independent assumptions. Prepare the entry to record the dishonor of the note, assuming that Blossom Company expects collection will occur. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Nov. 2 Accounts Receivable Interest Revenue Notes Receivable Debit 8400 Credit 8400 252 252 8400
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