Following are transactions of the Wipe-Out Company: Mar.2Accepted a $10,240, 5%, 90-day note dated this day in
Question:
Following are transactions of the Wipe-Out Company: Mar.2Accepted a $10,240, 5%, 90-day note dated this day in granting a time extension on the past-due account of JNC Company. Apr.21Discounted, with recourse, the JNC Company note at BancFirst at a cost of $50. June2Received notice from BancFirst that JNC Company defaulted on the note due May 31. Paid the bank the principal plus interest due on the note. (Hint: Create an account receivable for the maturity value of the note.) July16Received payment from JNC Company for the maturity value of its dishonoured note plus interest for 45 days beyond maturity at 5%. Sept.3Accepted a $4,160, 60-day, 5% note dated this day in granting Cecile Duval a time extension on her past-due account. 18Discounted, without recourse, the Duval note at BancFirst at a cost of $25.
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III