M. L. DiMaurizio had the following notes receivable transa
Question and Solution
M. L. DiMaurizio had the following notes receivable transactions: 20-3 June 20 Received a $2,400, 30-day, 10% note from K. Lorenzo in payment for sale of merchandise. July 20 K. Lorenzo paid the note plus interest. 25 Sold merchandise on account to R. Boone, $5,600. Aug. 4 R. Boone paid $600 and gave a $5,000, 30-day, 12% note to extend time for payment. Sept. 3 R. Boone paid the note plus interest. 10 Sold merchandise to T. Akins for $3,000: $400 plus a $2,600, 30-day, 11% note. Oct. 10 T. Akins paid $600, plus interest, and extended the note ($2,000) for 30 days. Nov. 9 T. Akins paid the note plus interest. 10 Sold merchandise on account to J. Brown, $5,000. 25 J. Brown paid $1,000 and gave a $4,000, 30-day, 12% note to extend time for payment. Dec. 25 J. Brown’s note is dishonored. 20-4 Jan. 13 J. Brown’s dishonored note is collected, plus interest at 12% on the maturity value. REQUIRED Record the transactions in a general journal.