Question: On October 1 2009 ACME Athletic Equipment Company purchased athletic
On October 1, 2009, ACME Athletic Equipment Company purchased athletic equipment on account for $10,500 from Sporting Goods Unlimited. On November 1, ACME renegotiated its debt by signing a three-month promissory note at an interest rate of 10%. Record the transactions in the accounting equation that would be recorded on October 1 and November 1 for both companies. Determine the due date of the note and prepare the transaction (using the accounting equation) to record the collection of the note on the books of both companies.
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