Question

valley spa purchased $10,200 in plumbing components from tubman company. valley spa signed a 60-day, 10% promissory note for $10,200. if the note is dishonored, but tubman intends to continue collection efforts, what is the journal entry made by tubman to record the dishonored note? (use 360 days a year.)

Answer 1

The magazine access made through Tubman to file the dishonored be aware is

Accounts receivable debited

Interest sales credited

Notes receivable credited

The required details for magazine access in given paragraph

Accounts receivable = $10370  Interest sales (10200*10%*60/360)=$170

Notes receivable = $10200

A magazine access is used to file a enterprise transaction within side the accounting facts of a enterprise. A magazine access is typically recorded within side the well known ledger; alternatively, it could be recorded in a subsidiary ledger this is then summarized and rolled ahead into the overall ledger. The well known ledger is then used to create economic statements for the enterprise.

The good judgment in the back of a magazine access is to file each enterprise transaction in as a minimum places. For example, while you generate a sale for coins, this will increase each the sales account and the coins account. Or, in case you purchase items on account, this will increase each the debts payable account and the stock account.

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