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undefined BE8.13 Lee company accepts a $27,000, four-month, 6% note receivable in settlement of an account receivable on June 1, 2021. Interest is to be
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BE8.13 Lee company accepts a $27,000, four-month, 6% note receivable in settlement of an account receivable on June 1, 2021. Interest is to be paid at maturity. Lee Co. has a December 31 year end and adjusts its accounts annually. (Lee Co. 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 was honored. b) Assume instead that the note is dishonored but eventual collection is expected. Record the October 1 journal entry. c) Assume instead that the note is dishonored, and eventual collection is not expected. Record the October 1 journal entryStep by Step Solution
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