Question $8$ of $9$

Pharoah Company accepts a $$28,800,$ four$-$month, $8\%$ note receivable in settlement of an account receivable on June $1,2024.$ Interest is to be paid at maturity. Pharoah Company has a December $31$ year end and adjusts its accounts annually. $($Note: Pharoah Company uses only one allowance account for both accounts and notes receivable.$)$

$($a$)$

Record $(1)$ the issue of the note on June $1$ and $(2)$ the settlement of the note on October $1,$ assuming the note is honoured. $($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 $0$ for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.$)$

Date

Account Titles

Debit

Credit

June $1**$

Notes Receivable

account receivable

Notes Receivable