Valley Spa purchased $10,200 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 14% promissory note for $10,200. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.)

Debit Accounts Receivable—Valley Spa $10,438 Credit Interest Revenue $238

Credit Notes Receivable $10,200.

Explanation:

Preparation of the the journal entry to record the dishonored note

Debit Accounts Receivable—Valley Spa $10,438

($10,200+$238)

credit Interest Revenue $238

($10,200 x 14% x 60/ 360)

Credit Notes Receivable $10,200

(To record the dishonored note)

c is the correct answer.

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%