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The following are notes receivable transactions for Wildhorse Co.: May 1 Received a $20,000, six-month, 6% note from Jioux Company in settlement of an account
The following are notes receivable transactions for Wildhorse Co.:
May 1 | Received a $20,000, 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 Wildhorses year end. Adjustments are recorded annually. | |
July 31 | Lent $1,200 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. Wildhorse does not expect to collect on the note. |
Record the transactions for Wildhorse Co. Wildhorse Co. uses only one allowance account for both accounts and notes receivable.
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