Question
Vandiver Company had the following select transactions. Apr. 1, 2017 Accepted Goodwin Companys 12-month, 12% note in settlement of a $30,000 account receivable. July 1,
Vandiver Company had the following select transactions. Apr. 1, 2017 Accepted Goodwin Companys 12-month, 12% note in settlement of a $30,000 account receivable. July 1, 2017 Loaned $25,000 cash to Thomas Slocombe on a 9-month, 10% note. Dec. 31, 2017 Accrued interest on all notes receivable. Apr. 1, 2018 Received principal plus interest on the Goodwin note. Apr. 1, 2018 Thomas Slocombe dishonored its note; Vandiver expects it will eventually collect. Prepare journal entries to record the transactions. Vandiver prepares adjusting entries once a year on December 31.
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