57
Chapter 2
Accounting for Receivables
d) Prepare journal entries to write off Beta Company’s note on January 1, 2017.
Date
Account Title and Explanation
Debit
Credit
AP-19A (
7
)
On February 1, 2016, the Success Company accepted a six-month note receivable as an
extension of time for a balance of $15,000 owing from Summit Company. The note has an
annual interest rate of 7%. Success Company has a June 30 year-end.
Required
Prepare the following journal entries for Success Company.
a) Prepare the journal entry on February 1, 2016.
Date
Account Title and Explanation
Debit
Credit
b) Prepare the journal entry for the year-end adjustment, if required.
Date
Account Title and Explanation
Debit
Credit
