On December 1, the Youngstown Company accepted a $8,000 note in settlement of an overdue Accounts Receivable. The note bears 8% interest for 3 months. The Youngstown Company has a year end of December 31.
Required:
Prepare the journal entries to record the (1)transaction on December 1, (2)the accrued interest at December 31, and (3)the collection of the note on March 1. Round any amounts to the nearest dollar. Omit explanations.

Question

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The Answer of On December 1, the Youngstown Company accepted a $8,000 note in settlement of an overdue Accounts Receivable. The note bears 8% interest for 3 months. The Youngstown Company has a year end of December 31.
Required:
Prepare the journal entries to record the (1)transaction on December 1, (2)the accrued interest at December 31, and (3)the collection of the note on March 1. Round any amounts to the nearest dollar. Omit explanations.

On December 1, the Youngstown Company Accepted a $8,000 Note