On August 2, Jun Co. receives a $6,000, 90-day, 12% note from customer Ryan Albany as payment on his $6,000 account receivable. Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same year. (Use 360 days a year.)

Question

Business

Keith Logan

23 November, 16:00

On August 2, Jun Co. receives a $6,000, 90-day, 12% note from customer Ryan Albany as payment on his $6,000 account receivable. Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same year. (Use 360 days a year.)

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Answers (1)

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Adeline Combs · Answer 1

The journal entry for the following economic activity is given below.

Explanation:

Interest revenue = 6000*12% * 91/360 = 182

Date Account Title Dr Cr

Oct 31 Cash 6,180

Notes receivable 6,000

Interest revenue 180