Question

Hernandez Enterprises sells on account. When a customer account becomes four months old, Hernandez converts the account to a note receivable. During 2012, Hernandez completed these transactions:
Jan 31 Sold goods on account to Java Joe, $15,000. Ignore cost of goods sold.
Jun 1 Received a $15,000, 60-day, 5% note from Java Joe, in satisfaction of its past-due account receivable.
Jul 31 Collected the Java Joe, note at maturity. Use a 360-day year for interest computation.

Requirement
1. Record the transactions in Hernandez Enterprises’ journal.



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  • CreatedApril 29, 2014
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