Question: Jonah Enterprises sells on account When a customer account becomes

Jonah Enterprises sells on account. When a customer account becomes four months old, Jonah converts the account to a note receivable. During 201 2, Jonah completed these transactions:

Jan 29 Sold goods on account to Belmont, Inc., $24,000. Ignore cost of goods sold.
Jun 1 Received a $24,000, 60-day, 12% note from Belmont, Inc., in satisfaction of its past-due account receivable.
Jul 31 Collected the Belmont, Inc., note at maturity. Use 360-day year for interest computation.

1. Record the transactions in Jonah Enterprises’ journal.

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  • CreatedApril 29, 2014
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