Question

Lowery Company hasn't received payment upon the maturity date on a $6,000 note from Basket Corporation. Lowery expects to collect the note eventually. Assuming no accrual of interest of $100 has been made, journalize the appropriate entry?

Answer 1

The journal entry for the following is as follows:

Step-by-step explanation:

Accounts Receivable A/c....................Dr $6,000

To Notes Receivable A/c.....................Dr $6,000

As the company did not received the payment on the maturity date so collecting the note. So, the accounts receivable is debited and the account of notes receivable is credited. And it is assumed no accrual of interest is made , there will be no entry for the same otherwise it would be credited.