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.