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YenorCo.owesSpendloveLtd.$115,000onanotepayable,plus$7,500interest.Spendlove agreestoacceptlandin fullsettlement.ThelandisrecordedonthebooksofYenorat$55,600andis currentlyworth$85,000. Required: PreparethejournalentriestorecordthedebtsettlementonthebooksofYenor.
YenorCo.owesSpendloveLtd.$115,000onanotepayable,plus$7,500interest.Spendlove
agreestoacceptlandin fullsettlement.ThelandisrecordedonthebooksofYenorat$55,600andis
currentlyworth$85,000.
Required:
PreparethejournalentriestorecordthedebtsettlementonthebooksofYenor.
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