when a customer account becomes three months old big ted converts the account to a n 643854
Journalizing notes receivable transactions Big Ted Toys sells on account. When a customer account becomes three months old, Big Ted converts the account to a note receivable and immediately discounts the note to a bank. During 2012, Big Ted completed the following transactions:
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Aug 29 |
Sold goods on account to V. Mayer, $3,000. |
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Dec 1 |
Received a $3,000, 60 day, 11% note from Mayer in satisfaction of his past due account receivable. |
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1 |
Sold the Mayer note by discounting it to a bank for $2,600. |
Requirement
1. Record the transactions in Big Ted’s journal.