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Required Prepare Entries To Record The Following Transactions of Wipe Out Company Mar

Wipe Out Company accepted a $10,240, 5%, 90-day note from INC Company on March 2nd to extend a past due account. On April 21st, Wipe Out discounted the INC Company note at BancFirst with recourse for $50. On June 2nd, Wipe Out was notified that INC Company defaulted on the note. On July 16th, Wipe Out received payment from INC Company for the note plus interest. Wipe Out also accepted a $4,160, 60-day, 5% note from Cecile Duval on September 3rd to extend a past due account, and discounted that note at BancFirst without recourse on October 18th for $25.

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60 views1 page

Required Prepare Entries To Record The Following Transactions of Wipe Out Company Mar

Wipe Out Company accepted a $10,240, 5%, 90-day note from INC Company on March 2nd to extend a past due account. On April 21st, Wipe Out discounted the INC Company note at BancFirst with recourse for $50. On June 2nd, Wipe Out was notified that INC Company defaulted on the note. On July 16th, Wipe Out received payment from INC Company for the note plus interest. Wipe Out also accepted a $4,160, 60-day, 5% note from Cecile Duval on September 3rd to extend a past due account, and discounted that note at BancFirst without recourse on October 18th for $25.

Uploaded by

Let's Talk With Hassan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Required Prepare entries to record the following

transactions of Wipe Out Company Mar #4429


RequiredPrepare entries to record the following transactions of Wipe-Out Company:Mar. 2
Accepted a $10,240, 5%, 90-day note dated this day in granting a time extension on the past-
due account of )NC Company. Apr. 21 Discounted, with recourse, the |NC Company note at
BancFirst at a cost of $50. June 2 Received notice from BancFirst that JNC Company defaulted
on the note due May 31. Paid the bank the principal plus interest due on the noteJuly 16
Received payment from JNC Company for the maturity value of its dishonoured note plus
interest for 45 days beyond maturity at 5%.Sept. 3 Accepted a $4,160, 60-day, 5% note dated
this day in granting Cecile Duval a time extension on her past-due account.18 Discounted,
without recourse, the Duval note at BancFirst at a cost of $25.Analysis Component:What
reporting is necessary when a business discounts notes receivable with re-course and these
notes have not reached maturity by the end of the fiscal period? Explain the reason for this
requirement and what accounting principle is being satisfied.View Solution:
Required Prepare entries to record the following transactions of Wipe Out Company Mar

ANSWER
http://paperinstant.com/downloads/required-prepare-entries-to-record-the-following-transactions-
of-wipe-out-company-mar/

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