Question: On May 1, Fastco accepted a note receivable from Slowco to pay off a $100,000 debt. The note had an 18% interest rate and was
On May 1, Fastco accepted a note receivable from Slowco to pay off a $100,000 debt. The note had an 18% interest rate and was a 6-month note. On November 1, the maturity date of the note, Slowco paid off the note in full. What journal entries will Fastco make on November 1? Debit Cash $118,000 Credit Note receivable $118,000 Debit Cash $118,000 Credit Interest revenue $18,000 Credit Note receivable $100,000 Debit Cash $109,000 Credit Expense on note $9,000 Credit Note receivable $100,000 Debit Cash $109,000 Credit Interest revenue $9,000 Credit Note receivable $100,000
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