On November 1, 2010, Lemon Grove Co.sold $30, 000 of goods and accepted a note bearing 6% interest.The note was due in one year.
Required:
a. Prepare a reversing entry for January 1, 2011.
b. Record the collection of the note on October 31, 2011.

Question

On November 1, 2010, Lemon Grove Co.sold $30, 000 of goods and accepted a note bearing 6% interest.The note was due in one year.
Required:
 a. Prepare a reversing entry for January 1, 2011.
b. Record the collection of the note on October 31, 2011.

Quizplus · Accepted Answer

The Answer of On November 1, 2010, Lemon Grove Co.sold $30, 000 of goods and accepted a note bearing 6% interest.The note was due in one year.
Required:
 a. Prepare a reversing entry for January 1, 2011.
b. Record the collection of the note on October 31, 2011.