Answer:
See explanation section.
Explanation:
June 23, Notes receivable Debit = $48,000
Accounts receivable Credit = $48,000
To record the note receivable from Radon Express.
September 21, Accounts receivable Debit = $48,960
Notes receivable credit = $48,000
Interest revenue = $960
<em>Calculation:</em> Interest revenue = [($48,000 × 8%) ÷ 360] × 90 = $960
<em>To record the dishonor of Note Receivable.</em>
October 21, Cash Debit = $49,368
Accounts receivable Credit = $48,960
Interest revenue Credit = $408
<em>Calculation: </em>Interest revenue = [($48,960 × 10%) ÷ 360] × 30 = $408
<em>To record the received of previously dishonored Notes Receivable with a 10% interest.</em>