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Question - Stricker Company accepted a $60,000, 10%, 90-day note dated May 16, from Johnson Corp. as an extension on its past-due Account Receivable.
Make the necessary general journal entries in Stricker Company's books on May 16 and August 14 (maturity date), for each of the following independent assumptions:
(a) Note was held until maturity and collected on time.
(b) Note was dishonoured. Amount of note and interest were written off as uncollectible. (Stricker uses the allowance method of accounting for bad debts.)
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