The Crown Company had the following transactions involving notes receivable during 20X1. ...
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Accounting
The Crown Company had the following transactions involving notes receivable during 20X1.
Mar.
10
Received a 90-day, 8 percent note for $12,000 from Morgan Corp., a customer whose account was overdue.
April
29
Discounted the note received from Morgan Corp. at the Security Bank. The bank charged a discount rate of 10 percent.
June
8
Received notice from Security Bank that Morgan Corp. had paid the note and the interest.
Aug.
10
Received a 30-day, 6-percent note for $21,800 from Andrew Ochoa, a customer whose account was overdue.
Sept.
9
Received the amount due from Andrew Ochoa.
Record the entries for Received a 90-day, 8 percent note for $12,000 from Morgan Corp., a customer whose account was overdue, and entry for Discounted the note received from Morgan Corp. at the Security Bank. The bank charged a discount rate of 10 percent and entry for Received notice from Security Bank that Morgan Corp. had paid the note and the interest, and entry for Received a 30-day, 6-percent note for $21,800 from Andrew Ochoa, a customer whose account was overdue, and entry for Received the amount due from Andrew Ochoa.
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