074 points M8-12 Recording Note Receivable Transactions [LO 8-3 RecRoom Equipmen

Question

074 points M8-12 Recording Note Receivable Transactions [LO 8-3 RecRoom Equipment Company received an $11,400, six-month, 5 percent note to settle an $11,400 unpaid balance owed by a customer. a. The note is accepted by RecRoom on November 1, causing the company to increase its Notes Receivable and decrease its Accounts Receivable. b. RecRoom adjusts its records for interest eamed to its December 31 year-end. C. RecRoom receives the interest on the note's maturity date. d. RecRoom receives the principal on the note's maturity date. Prepare journal entries to record the above transactions for RecRoom. (If no entry is required for a transaction'event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet Record the receipt of a note on November 1 for $11,400 to settle an outstanding accounts receivable balance of a customer Note: Enter debits before credits. Nov 01 Record entry Clear entry View general journal General Journal

Explanation / Answer

Date General Journal Debit Credit Nov 1 Note receivable $11,400 Accounts Receivable $11,400 Dec. 31 Interest Receivable ($11,400 x 5% x 2/12) $95 Interest Revenue $95 Apr. 30 Cash $285 Interest receivable $95 Interest revenue ($11,400 x 5% x 4/12) $190 Apr. 30 Cash $11,400 Note Receivable $11,400

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