Question

Do It! Review 8-3 Sheridan Company accepts from Gates Stores a $9,100, 4-month, 10% note dated May 31 in settlement of Gates' overdue account. The maturity date of the note is September 30. Calculate the interest payable at maturity. (Round answer to o decimal places, e.g. $155.) Interest payable at maturity SHOW LIST OF ACCOUNTS LINK TO TEXT What entry does Sheridan Company make at the maturity date, assuming Gates pays the note and interest in full at that time? (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answer to 0 decimal places, e.g. 152.) Account Titles and Explanation Debit Credit To record collection of Gates note and interest) SHOW LIST OF ACCOUNTS

Answer 1

Interest payable at maturity = Note x Interest rate x Time period

= 9,100 x 10% x 4/12

= $303

Journal

Date	Account Titles and Explanation	Debit	Credit
September 30	Cash	$9,403
	Note receivable		$9,100
	Interest revenue		$303

Kindly comment if you need further assistance.

Thanks‼!