(a) A customer's $6,000, 15 percent, 120-day note dated December 1, 2008, was sold to the bank with recourse on December 31, 2008, at 18 percent to obtain quick cash for working capital purposes. Give the entry to record the proceeds. Assume interest has not been recorded on the note.
Computations:
(b) On the due date, the customer defaulted, the bank charges were $20. Give the required entry or entries.

Question

Quizplus · Accepted Answer

The Answer of (a) A customer's $6,000, 15 percent, 120-day note dated December 1, 2008, was sold to the bank with recourse on December 31, 2008, at 18 percent to obtain quick cash for working capital purposes. Give the entry to record the proceeds. Assume interest has not been recorded on the note.
Computations:
(b) On the due date, the customer defaulted, the bank charges were $20. Give the required entry or entries.

(A) a Customer's $6,000, 15 Percent, 120-Day Note Dated December