E8-22 Journalizing note receivable transactions [10 min]
Hot Heat Steam Cleaning performs services on account. When a customer account
becomes four months old, Hot Heat converts the account to a note receivable.
During 2012, the company completed the following transactions:
Apr 28 Performed service on account for Sinclair Club, $18,000.
Sep 1 Received an $18,000, 60-day, 9% note from Sinclair Club in satisfaction of its past-due account receivable. Oct 31 Collected the Sinclair Club note at maturity.
Requirement
1. Record the transactions in Hot Heat’s journal
No comments:
Post a Comment