Jackson Textiles had an outstanding account in the amount of $14,800 owing to Austos Manufacturing. On October

Question:

Jackson Textiles had an outstanding account in the amount of $14,800 owing to Austos Manufacturing. On October 1, 2014, Austos agreed to convert Jackson’s account to an 8%, 45-day note having a of $14,800. Record Jackson’s entries on October 1, 2014, and on the due date.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...