40 1739 PM NOTES RECEIVABLE ENTRIES J K rull Cn had the olin

40% 17:39 PM NOTES RECEIVABLE ENTRIES J. K. rull Cn. had the oling transact inn: 20 1 July 20 Receiveda $750. 30 lsiy 54% note hom.Akita in payment lorsale rl merchandisc. . Akita paid note issued July 20 plus ierest. Aug. 19 Sold lIIL\'LI illidise on account to L. Deene, S1,10O 25 aa1,n 3n-day, 6 note ro extend time lor nayment pg·559 Fa.re:

Solution

Date Account titles and explanation Debit Credit 20X1 20-Jul Notes receivable 750 Sales 750 (Received notes in payment for sale of merchandise) 19-Aug Cash 753 Notes receivable 750 Interest revenue (750*5%*30/360) 3 (Received cash for notes with interest) 25-Aug Accounts receivable-L.Beene 1100 Sales 1100 (Sold merhandise on account) 5-Sep Cash 100 Notes receivable 1000 Accounts receivable-L.Beene 1100 (payment for merchandise paid through cash and notes) 5-Oct Cash 1005 Notes receivable 1000 Interest revenue (1000*6%*30/360) 5 (Received cash for notes with interest) 10-Oct Cash 50 Notes receivable 700 Sales 750 (Received notes in payment for sale of merchandise and cash) 9-Nov Cash 201 Notes receivable 200 Interest revenue (200*6%*30/360) 1 (Received cash for notes with interest) 9-Dec Cash 505 Notes receivable 500 Interest revenue (500*6%*60/360) 5 (Received cash for notes with interest) 10-Dec Accounts receivable-B.Kraus 1500 Sales 1500 (Sold merhandise on account) 15-Dec Cash 150 Notes receivable 1350 Accounts receivable-B.Kraus 1500 (Received notes in payment for sale of merchandise and cash) 20X2 14-Jan Accounts receivable-B.Kraus 1358 Notes receivable 1350 Interest revenue (1350*7%*30/360) 8 (Dishonor note) 13-Feb Cash 1358 Accounts receivable-B.Kraus 1358 (Dishonor note realised later)