Problem

Journalizing notes receivable transactions [10-15 min]Big Ted Toys sells on account. When...

Journalizing notes receivable transactions [10-15 min]

Big Ted Toys sells on account. When a customer account becomes three months old, Big Ted converts the account to a note receivable and immediately discounts the note to a bank. During 2012, Big Ted completed the following transactions:

Aug 29

Sold goods on account to V. Mayer, $3,000.

Dec 1

Received a $3,000, 60-day, 11% note from Mayer in satisfaction of his past-due account receivable.

1

Sold the Mayer note by discounting it to a bank for $2,600.

Requirement

1. Record the transactions in Big Ted’s journal

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Solutions For Problems in Chapter 8A