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Please lay this out so I can undestand it. On May 5, Thompson Company received a $9,000, 120-day, 8% note from Allen Company in payment
Please lay this out so I can undestand it.
On May 5, Thompson Company received a $9,000, 120-day, 8% note from Allen Company in payment of its account. On May 20, Thompson Company discounted Allen Company's note at the bank at 20%, with recourse. On September 2, the bank notified Thompson Company that Allen Company had dishonored the note. Since the note had been dishonored, the bank deducted the maturity value of the note plus a protest fee of $75 from Thompson Company's account. Required: Journalize Thompson Company's transactions on May 5, May 20, and September 2Step by Step Solution
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