On October 1,2012,Allen Jewelry Company accepted a 4-month,10% note for $2,400 in settlement of an overdue account receivable.Interest revenue was accrued through December 31,2012.Allen receives the maturity value of the note (the original principal plus all of the interest)on the due date.What journal entry is needed when the funds are collected?
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Question

On October 1,2012,Allen Jewelry Company accepted a 4-month,10% note for $2,400 in settlement of an overdue account receivable.Interest revenue was accrued through December 31,2012.Allen receives the maturity value of the note (the original principal plus all of the interest)on the due date.What journal entry is needed when the funds are collected?
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\hline \quad\quad& \quad&\quad \
\hline & & \\hline & & \\hline & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of On October 1,2012,Allen Jewelry Company accepted a 4-month,10% note for $2,400 in settlement of an overdue account receivable.Interest revenue was accrued through December 31,2012.Allen receives the maturity value of the note (the original principal plus all of the interest)on the due date.What journal entry is needed when the funds are collected?
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\hline \quad\quad& \quad&\quad \
\hline & & \\hline & & \\hline & & \
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\end{array}$$

On October 1,2012,Allen Jewelry Company Accepted a 4-Month,10% Note for $2,400