Question

g on april 12, hong company agrees to accept a 60-day, 10%, $4,700 note from indigo company to extend the due date on an overdue accounts payable. what is the journal entry needed to record the transaction by indigo company?

Answer 1

Debit Accounts Payable $4,500; credit Notes Payable $4,500.

In this case, accounts payable which have credit will be replaced by Notes payable. Hence accounts payable will be debited and notes payable will be credited.

A transaction is a finished settlement between a buyer and a seller to change items, offerings, or economic belongings in go back for cash. The term is also generally used in corporate accounting. In commercial enterprise bookkeeping, this undeniable definition can get difficult.

Primarily based on the alternative of cash, there are three sorts of accounting transactions, particularly coin transactions, non-cash transactions, and credit score transactions.

Transaction process is a time period that refers to the adding, converting, deleting, or searching up of a record in an information record or database via coming into the information at a terminal or computer

Learn more about transactions here:-brainly.com/question/1016861

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