Question
The following are notes receivable transactions for Sunland Co.: May 1 Received a $17,000, six-month, 6% note from Jioux Company in settlement of an account
The following are notes receivable transactions for Sunland Co.: May 1 Received a $17,000, six-month, 6% note from Jioux Company in settlement of an account receivable. Interest is due at maturity. June 30 Accrued interest on the Jioux note, at Sunlands year end. Adjustments are recorded annually. July 31 Lent $2,400 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 due from Ms. Irvine. Sept. 30 Received payment in full from Ms. Irvine. Nov. 1 Jioux Company defaulted on its note. Sunland does not expect to collect on the note. Record the transactions for Sunland Co. Sunland Co. uses only one allowance account for both accounts and notes receivable. (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. Round answers to 0 decimal places, e.g. 5,276. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title to accept note for accounts receivable enter a debit amount enter a credit amount enter an account title to accept note for accounts receivable enter a debit amount enter a credit amount (Accept note for accounts receivable.) choose a transaction date enter an account title to accrue interest earned enter a debit amount enter a credit amount enter an account title to accrue interest earned enter a debit amount enter a credit amount (To accrue interest earned.) choose a transaction date enter an account title to record the loan cash in exchange for note enter a debit amount enter a credit amount enter an account title to record the loan cash in exchange for note enter a debit amount enter a credit amount (Loan cash in exchange for note.) choose a transaction date enter an account title to record the Collection of interest earned enter a debit amount enter a credit amount enter an account title to record the Collection of interest earned enter a debit amount enter a credit amount (Collect interest earned.) choose a transaction date enter an account title to record collection of note receivable and interest enter a debit amount enter a credit amount enter an account title to record collection of note receivable and interest enter a debit amount enter a credit amount enter an account title to record collection of note receivable and interest enter a debit amount enter a credit amount (To record collection of note receivable and interest.) choose a transaction date enter an account title to record dishonouring of note where collection is not expected enter a debit amount enter a credit amount enter an account title to record dishonouring of note where collection is not expected enter a debit amount enter a credit amount enter an account title to record dishonouring of note where collection is not expected enter a debit amount enter a credit amount (To record dishonouring of note where collection is not expected.
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