Gorman Enterprises sells on account When a customer account becomes
Gorman Enterprises sells on account. When a customer account becomes four months old, Gorman converts the account to a note receivable. During 2013, Gorman completed these transactions:
Jun 29 Sold goods on account to I. Happy, $10,000.
Nov 1 Received a $10,000, 60-day, 9% note from I. Happy in satisfaction of his past-due account receivable.
Dec 31 Collected the I. Happy note at maturity.
Record the transactions in Gorman Enterprises’ journal.
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