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

Marin

Business

8 November, 10:16

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.)

+3

Answers (1)

Know the Answer?

Brielle · 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