RecRoom Equipment Company received an $8,000, six-month, 6 percent note to settle an $8,000 unpaid balance owed
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RecRoom Equipment Company received an $8,000, six-month, 6 percent note to settle an $8,000 unpaid balance owed by a customer. Prepare journal entries to record the following transactions for RecRoom. Rather than use letters to reference each transaction, use the date of the transaction.
The note is accepted by RecRoom on November 1, 2012, causing the company to increase its Notes Receivable and decrease its Accounts Receivable.
RecRoom adjusts its records for interest earned to December 31, 2012.
RecRoom receives the principal and interest on the note's maturity date.
MaturityMaturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Nov 1 dr Notes Receivable A 8000 cr Accounts Receivable A 8000 ...View the full answer
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Related Book For 
Fundamentals of Financial Accounting
ISBN: 978-0078025372
4th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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