Question: Question 5 (13 Marks) John Inc. often requires customers to sign notes for major credit purchases. Record the following transactions for John: Feb 12

Question 5 (13 Marks) John Inc. often requires customers to sign notes for major credit purchases. Record the following transactions for John: Feb 12 Accepted a $42,000, 4%, 2-month note from Joe for a 19-foot motorboat built to his specifications. Interest is due at maturity. The company uses the perpetual inventory method. Apr 14 May 26 Jun 1 Received notification from Joe that he was unable to honour his note but that he expects to pay the amount owed next month. Received a cheque from Joe for the total amount owed. Received notification by the bank that Joe's cheque was being returned "NSF" and that Joe had declared personal bankruptcy.

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