Question: On August 1, Oak Ltd. accepted a $28,000 note from Borges Ltd. in settlement of an account receivable. The note bears interest of 6% and
On August 1, Oak Ltd. accepted a $28,000 note from Borges Ltd. in settlement of an account receivable. The note bears interest of 6% and is due in two months, on October 1. Interest on the note was accrued on August 31 and on September 30. On October 1, Borges paid the note, including the accrued interest. Prepare the journal entries required to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit
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