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antiseptic1488 [7]
3 years ago
14

Majesty Productions accepted a $7,200, 120-day, 6% note from Swartz Studio on March 1. On the date the note matures, Swartz is u

nable to pay, but Majesty intends to continue collection efforts. What entry should Majesty record on the maturity date for this dishonored note?

Business
2 answers:
vlabodo [156]3 years ago
4 0

Answer:

Check the explanation

Explanation:

The accounting entry (which is an official record/book that documents a transaction of the day to day activities of a business. In most cases, an entry is prepared through the principles of the double entry bookkeeping system, which involves one to create both a debit and credit entry, and which ultimately leads to the creation of a comprehensive set of financial statements.) for Majesty record on the maturity date for this dishonored note is in the attached image below:

stepladder [879]3 years ago
4 0

Answer:

Debit Accounts Receivable $7,344

Credit Interest Revenue $144

Credit Notes Receivable $7,200

Explanation:

Majesty Production

Interest: $7,200 × .06 × 120/360 = $144

Therefore the entry that Majesty should record on the maturity date for this dishonored note are below:

Debit Accounts Receivable $7,344

Credit Interest Revenue $144

Credit Notes Receivable $7,200.

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Answer:

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3 years ago
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Eduardwww [97]

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Answer:

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