Question

Entries for Receipt and Dishonor of Note Receivable

Journalize the following transaction of Sanchez Productions.Assume 360 days in a year. For a compound tranaction,

July 12. Received a 140000,120- day,7% note dated July 12 fromAccolade Co. on account.

Nov. 9. The note is dishonored by Accolade Co.

Dec. 9. Received the amount due on the dishonored note plusinterest for 30 days at 9% on the total amount charged to AccoladeCo. on November 9.

DRAFT:  

July 12 NotesReceivable                       ______________

              Accounts Receivable AccoladeCo.                           _______________

Nov.9     Accounts Receivable AccoladeCo._____________

             NotesReceivable                                                          ______________

              InterestRevenue                                                          _______________

Dec.9    Cash                                              ______________

              Accounts Receivable- AccoladeCo.                              _______________

              InterestRevenue                                                           _______________