What is journal entry to record the dishonored note

Assignment Help Financial Management

Reference no: EM131599923

Valley Spa purchased $11,700 in plumbing components from Tubman Co. Valley Spa Studios signed a 60-day, 10% promissory note for $11,700. If the note is dishonored, what is the journal entry to record the dishonored note? (Use 360 days a year.)

Debit Bad Debt Expense $11,700; credit Notes Receivable $11,700.

Debit Accounts Receivable—Valley Spa $11,895, credit Interest Revenue $195; credit Notes Receivable $11,700.

Debit Accounts Receivable $11,700; debit Bad Debt Expense $195; credit Notes Receivable $11,895.

Debit Accounts Receivable—Valley Spa $11,700; credit Notes Receivable $11,700.

Debit Bad Debt Expense $11,895; credit Accounts Receivable $11,895.

Reference no: EM131599923

Questions Cloud

Sell-off unproductive assets : Which of the following is not consistent with the life cycle theory of a dividend policy? Sell-off unproductive assets

What is the maximum possible subscription price : what is the maximum possible subscription price? what is the minimum? What is the ex-rights price? what is the value of a right?

Investment banker assume the risk of sale to the public : Which of the following methods of issuing securities does the investment banker assume the risk of sale to the public?

What growth rate is expected for the company stock price : If the company plans to pay a dividend of $7.11 next year, what growth rate (in percent) is expected for the company's stock price?

What is journal entry to record the dishonored note : Valley Spa purchased $11,700 in plumbing components from Tubman Co. Valley Spa Studios signed 60-day, what is the journal entry to record the dishonored note?

Calculate the monthly payment amount : Calculate the monthly payment amount. Calculate the principal balance at the end of the 3 year term.

Consistent with the life cycle theory of dividend policy : Which of the following is not consistent with the life cycle theory of a dividend policy?

What is the current bond price : Jeffries, Inc. has 8 percent coupon bonds with a $1,000 par value on the market that have 13 years left to maturity. what is the current bond price?

Estimate its optimal capital structure : What would be O’Connor’s estimated cost of equity if it were to change its capital structure to 50 percent debt and 50 percent equity?

User Account

All Pages