On September 1, 2011, Health Wise International acquired a 12 percent, nine-month note receivable from Herbal Innovations,
Question:
On September 1, 2011, Health Wise International acquired a 12 percent, nine-month note receivable from Herbal Innovations, a credit customer, in settlement of a $22,000 account receivable.
Prepare journal entries to record the following:
a. The receipt of the note on September 1, 2011, in settlement of the account receivable.
b. The adjustment to record accrued interest revenue on December 31, 2011.
c. The collection of the principal and interest on May 31, 2012.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Question Posted: