74
Chapter 2
Accounting for Receivables
d) Prepare the journal entries for receipt of payment from Delta Company on January 1,
2017.
Date
Account Title and Explanation
Debit
Credit
AP-19B (
7
)
On March 1, 2016 Asper Company accepted a $100,000, six-month note from Arctic Company
as a time extension on a past-due amount in accounts receivable. The note has an interest rate
of 5%.
Required
a) Prepare the journal entry for Asper Company on March 1, 2016.
Date
Account Title and Explanation
Debit
Credit
b) Prepare the journal entry for Asper Company to record the payment of the note in full
with interest on August 31, 2016.
Date
Account Title and Explanation
Debit
Credit
