Missing info on the photo: (Credit column was cut out) Sep 1 Discounted Charlie Note: 8,000 Nov 30 Discounted Vim
All notes are trade notes receivable unless otherwise specified. The Charlie note was paid per notification received from the bank. The Howard Company note was dishonored on the due date but the legal department has assured management of its full collectability.
The company with your concurrence will not use the notes receivable discounted account but will merely note on the face of the statement of financial position the amount of notes receivable discounted but still outstanding.
1. At what amount on the current assets section of the statement of financial position dated Dec 31 will the notes receivable trade be carried?
2. Based on the ledger account presented, what amount of interest income should be accrued at december 31?