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9 December, 11:10

Journalize the following transactions of Trapper Jon’s Productions. Assume 360 days in a year.

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 December, 11:31
    0
    To record note received

    On June 23. Debit Credit

    Notes Receivable $48,000

    Accounts receivable for Radon ExpressCo $48,000

    interest revenue = $48,000 x 8%x 90/360

    To record dishonored note

    On September 21st Debit Credit

    Accounts receivable for Radon Co $48,960

    Notes Receivable $48,000

    Interest Revenue $960

    Interest Revenue $48,960 x 10%x 30/360 = $408

    Journal to record Cash Received

    October 21 Debit Credit

    Cash $49,368

    Accounts Receivable for Radon Express Co $48,960

    Interest $408
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