Question

During 2018, LeBron Corporation accepts the following notes receivable. a. On April 1, LeBron provides services to a customer on account. The customer signs a four-month, 9% note for $5,300. b. On June 1, LeBron lends cash to one of the company’s executives by accepting a six-month, 10% note for $9,300. c. On November 1, LeBron accepts payment for prior services by having a customer with a past due account receivable sign a three-month, 8% note for $4,300. Required: Record the acceptance of each of the notes receivable. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Answer:

Explanation:

The journal entries are shown below:

a. Short term notes receivable A/c Dr $5,300

              To Service revenue A/c                        $5,300

(Being the service is provided based on the notes receivable)

b.  Short term notes receivable A/c Dr $9,300

              To Cash A/c                        $9,300

(Being cash is paid)

c.  Short term notes receivable A/c Dr $4,300

              To Account receivable A/c                        $4,300

(Being 3-month note receivable is accepted which is signed by the customer)