On November 1, 2023, Luna Corp. and Solar Ltd. reached an agreement to convert Solar's outstanding account
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Question:
On November 1, 2023, Luna Corp. and Solar Ltd. reached an agreement to convert Solar's outstanding account receivable of $32,000 into a 3-month, 7% note receivable.
On February 1, 2024, Solar dishonoured the note receivable.
Required:
Prepare required journal entries for Luna Corp. for the above transactions, assuming a December 31 year end and assuming adjusting journal entries are recorded at the end of its fiscal year.
Related Book For
Understanding Financial Accounting
ISBN: 9781119715474
3rd Canadian Edition
Authors: Christopher D. Burnley
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