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9 February, 07:02

Entries for Receipt and Dishonor of Note Receivable Journalize the following transactions of Trapper Jon's Productions. Assume 360 days in a year. For a compound transaction, if an amount box does not require an entry, leave it blank. June 23 Received a $48,000, 90-day, 8% note dated June 23 from Radon Express Co. on account. Sept. 21 The note is dishonored by Radon Express Co. Oct. 21 Received the amount due on the dishonored note plus interest for 30 days at 10% on the total amount charged to Radon Express Co. on September 21.

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  1. 9 February, 10:46
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    See explanation section.

    Explanation:

    June 23, Notes receivable Debit = $48,000

    Accounts receivable Credit = $48,000

    To record the note receivable from Radon Express.

    September 21, Accounts receivable Debit = $48,960

    Notes receivable credit = $48,000

    Interest revenue = $960

    Calculation: Interest revenue = [ ($48,000 * 8%) : 360] * 90 = $960

    To record the dishonor of Note Receivable.

    October 21, Cash Debit = $49,368

    Accounts receivable Credit = $48,960

    Interest revenue Credit = $408

    Calculation: Interest revenue = [ ($48,960 * 10%) : 360] * 30 = $408

    To record the received of previously dishonored Notes Receivable with a 10% interest.
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