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Uniform Supply accepted a $5,600, 90-day, 12% note from Tracy Janitorial on October 17. If the...

Uniform Supply accepted a $5,600, 90-day, 12% note from Tracy Janitorial on October 17. If the note is dishonored, but Uniform Supply intends to continue collection efforts, what entry should Uniform Supply make on January 15 of the next year? (Assume no reversing entries are made.) (Use 360 days a year.)

  • Debit Notes Receivable $5,600; debit Interest Receivable $168; credit Sales $5,768.

  • Debit Accounts Receivable $5,768; credit Interest Revenue $28; credit Interest Receivable $140, credit Notes Receivable $5,600.

  • Debit Cash $5,768; credit Notes Receivable $5,768.

  • Debit Cash $5,768; credit Interest Revenue $28; credit Interest Receivable $140, credit Notes Receivable $5,600.

  • Debit Cash $5,768; credit Interest Revenue $140; credit Interest Receivable $28, credit Notes Receivable $5,600.

Solutions

Expert Solution

Date Accounts Debit Credit
Jan 15 Accounts receivable $5768
Interest revenue ((5600*0.12*15/360) $28
Interest receivable (5600*0.12*75/360) $140
Notes receivable $5600

ekkarill92 answered 2 years ago
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