Prepare journal entries for the following transactions:
a. On November 1, Year 1, Kuhner Co. received a $1,000 note receivable with a 90-day maturity and a 12% interest rate in exchange for an outstanding account receivable of the same face amount.
b. Assume Kuhner Co. closes its books on a monthly basis. Prepare any adjusting journal entries necessary at November 30, Year 1.
c. Prepare any adjusting journal entries necessary at December 31, Year 1
a. The entry on receipt of note is
Notes Receivable Dr 1,000
Accounts Receivable Cr 1,000
The accounts receivable is converted to a note ...
The solution explains the entries needed for notes receivable transactions