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On August 2, Jun Co. receives a $7,400, 90-day, 13.5% note from customer Ryan Albany as payment on his $7,400 account receivable

 QS 9-12 Note receivable honored LO P4


 On August 2, Jun Co. receives a $7,400, 90-day, 13.5% note from customer Ryan Albany as payment on his $7,400 account receivable. Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same year. (Do not round intermediate calculations. Round your answers to nearest whole dollar value. Use 360 days a year.)


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Date Account Debit Credit
Oct 31 Cash 7,650
Notes Receivable 7,400
Interest revenue (7,400*13.5%*90/360) 250

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