On April 1, 2019, Tabor Co. received an $18,000 note from a customer in settlement of an
Question:
On April 1, 2019, Tabor Co. received an $18,000 note from a customer in settlement of an $18,000 account receivable from that customer. The note bore interest at the rate of 15% per annum, and the note plus interest was payable March 31, 2020.
Required:
Use the horizontal model to show the effects of each of these transactions and adjustments:
a. Receipt of the note on April 1, 2019.
b. The accrual of interest at December 31, 2019.
c. The collection of the note and interest on March 31, 2020.
Note: As an alternative to using the horizontal model, write the journal entries to show each of these transactions and adjustments.
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Related Book For
Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
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