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Problem 1. Prepare journal entries to record the following transactions entered into by the Transatlantic Corporation:
2012
July 2- Received a $10,000, 6%, 1-year note from Jesse Ltd as full payment on his account.
Aug. 4 -Sold merchandise on account to Samuel Ltd for $14,000, terms 2/10, n/30.
Oct. 8 -Samuel, Inc., returned merchandise worth $1,000.
Dece. 4- Received payment in full from Samuel Inc.
Dece. 30 -Accrued interest on Jesse note.
2013
May 2 -Jesse Ltd honored his promissory note by sending the face amount plus interest.
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