Ask Question
6 November, 03:42

Valley Spa purchased $8,000 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 12% promissory note for $8,000. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.)

+3
Answers (1)
  1. 6 November, 07:20
    0
    Answer:A/R, IR, NR

    Explanation: Journal entry to record Dishonored note are as follows

    A/R - Debit your Account Receivable for the total of principle and interest owned.

    IR - Credit the interest revenue account for the interest amount receivable.

    NR - Credit the notes receivable account for the principle balance.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Valley Spa purchased $8,000 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 12% promissory note for $8,000. If the note ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers