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RecRoom Equipment Company received an $12,000, six-month, 7 percent note to settle an $12,000 unpaid balance owed by a customer a. The note is accepted
RecRoom Equipment Company received an $12,000, six-month, 7 percent note to settle an $12,000 unpaid balance owed by a customer a. The note is accepted by RecRoom on November 1, causing the company to increase its Notes Receivable and decrease its Accounts Receivable b. RecRoom adjusts its records for interest earned to its December 31 year-end c. RecRoom receives the interest on the note's maturity date d. RecRoom receives the principal on the note's maturity date Prepare journal entries to record the above transactions for RecRoom. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Answer is not complete No Date General Journal Debit Credit Notes Receivable (short-term) 2,000 Accounts Receivable 12,000 2 Dec 31 Interest Receivable Interest Revenue 140 Apr 30 Cash Notes Receivable (short-term) Interest Receivable Interest Receivable 12,000 140 280 4 Apr 30 No Journal Entry Required
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