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Problem - Accounting for notes receivable - Professional Enterprises sells on account. When a customer account becomes four months old, Professional converts the account to a note receivable. During 2010, Professional completed these transactions:
Mar 29 Sold goods on account to Montclair, Inc., $21,000.
Aug 1 Received a $21,000, 60-day, 5% note from Montclair, Inc., in satisfaction of its past-due account receivable.
Sep 30 Collected the Montclair, Inc., note at maturity.
Requirement - Record the transactions in Professional Enterprises' journal.
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