Question
The following are notes receivable transactions for Sandhill Co.: May 1 Received a $19000, six-month, 6% note from Jioux Company in settlement on an accounts
The following are notes receivable transactions for Sandhill Co.:
May 1 Received a $19000, six-month, 6% note from Jioux Company in settlement on an accounts receivable. Interest is due at maturity.
June 30 Accrued interest on the Jioux note, at Sandhill's year end. Adjustments are recorded annually.
July 31 Lent $2400 cash to an employee, Noreen Irvine, receiving a two-month, 5% note. Interest is due at the end of each month.
Aug 31 Received the interest from Ms. Irvine.
Sept 30 Received payment in full from Ms. Irvine.
Nov 1 Jioux Company defaulted on its note. Sandhill does not expect to collect on the note
Question 1: Record the transactions for Sandhill Co. Sandhill Co. uses only one allowance account for both accounts and notes receivables.
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