On November 23, 2020, West Holdings Inc. asks to extend its past-due $6,000 accounts payable to...

 

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On November 23, 2020, West Holdings Inc. asks to extend its past-due $6,000 accounts payable to Technology Inc. After some negotiations, Technology Inc. agrees to accept $1,000 cash and a 60-day, 12 %, $5,000 note payable to replace the accounts payable. Required: 1. Prepare the journal entry to record the replacement of accounts payable to notes payable on November 23, 2020. On November 23, 2020, West Holdings Inc. asks to extend its past-due $6,000 accounts payable to Technology Inc. After some negotiations, Technology Inc. agrees to accept $1,000 cash and a 60-day, 12 %, $5,000 note payable to replace the accounts payable. Required: 1. Prepare the journal entry to record the replacement of accounts payable to notes payable on November 23, 2020.

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Number of days between 23rd November to 31st December 8 days of November 31 da... View the full answer