Prepare general journal entries for the following transactions: May 22 Received a 30-day, 9% note in payment

Question:

Prepare general journal entries for the following transactions:

May 22 Received a 30-day, 9% note in payment for merchandise sale of $22,000.

June 21 Received $165.00 cash (interest) on the old (May 22) note; the old note is renewed for 30 days at 10%.

July 21 Received principal and interest on the new (June 21) note.

28 Received a 45-day, 7% note in payment for accounts receivable balance of $11,600.

Sept. 11 Received $101.50 cash (interest) plus $1,600 principal on the old (July 28) note; the old note is renewed for 60 days (from September 11) at 9%.

Nov. 10 Received principal and interest on the new (September 11) note.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...