Record the following transactions in general journal form fo

Record the following transactions in general journal form for Klein Company. Please identify each answer by placing the letter of the transaction you are recording in front of it. July 1 Received a $5,000, 8%, 3-month note, dated July 1, from Amy Grant in payment of her open account. Oct 1 Received notification from Amy Grant that she was unable to honor her note at this time. It is expected that Grant will pay at a later date. Nov 15 Received full payment from Amy Grant for her note receivable previously dishonored.

Solution

Date Account titles & Explanations Debit Credit 1-Jul note receivable 5,000 account receivable 5,000 1-Oct Account receivable 5,100 note receivable 5,000 interest income (5000*8%*3/12) 100 15-Nov Cash 5,100 account receivable 5,100