Answer:
1.
c. October 31
2.
August 2
Dr. Note Receivable $6,400
Cr. Account Receivable $6,400
October 31
Dr. Cash $6,592
Cr. Note Receivable $6,400
Cr. Interest Income $192
Explanation:
1. Counting 90 days after August 2,
29 days of August
30 days of September
31 days of October
Total Days = 29 + 30 + 31 = 90 days
The last days is October 31,
2.
Note is received from the customer, to reduce the account receivable value we will credit the account receivable account and note receivable is an asset for Jun co. so, we will debit the Note receivable account to record this note.
Interest amount = $6,400 x 12% x 3/12 = $192
