4. Toll Company engaged in the following transactions: (a) A 90-day note receivable for $4,500, with...

 

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4. Toll Company engaged in the following transactions: (a) A 90-day note receivable for $4,500, with interest at 10% was accepted in settlement of a customer's unpaid accounts receivable balance. (b) Thirty days later, Toll Company discounted this note at a local The bank's discount percentage was 12%. The company records its contingent liability on discounted notes directly in an account. bank. (c) At the maturity date of the note, the maker failed to pay the note. The bank required Toll Company to pay the amount due plus a protest fee of $15. Required: Prepare the necessary journal entries to record the transactions on Toll Company's books. 4. Toll Company engaged in the following transactions: (a) A 90-day note receivable for $4,500, with interest at 10% was accepted in settlement of a customer's unpaid accounts receivable balance. (b) Thirty days later, Toll Company discounted this note at a local The bank's discount percentage was 12%. The company records its contingent liability on discounted notes directly in an account. bank. (c) At the maturity date of the note, the maker failed to pay the note. The bank required Toll Company to pay the amount due plus a protest fee of $15. Required: Prepare the necessary journal entries to record the transactions on Toll Company's books.

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