Question

On August 2, Jun Co. receives a $6,700, 90-day, 10.0% note from customer Ryan Albany as payment on his $6,700 account. Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same year. (Round your answers to nearest whole dollar value. Use 360 days a year.)

Answer 1

Answer:

Date          General Journal                             Debit     Credit

Oct. 31   Cash                                               $6,868

                       Notes receivable- R. Albany                  $6,700

                       Interest revenue                                     $168

                       (($6,700 * 10% * 90/360)