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Interest-Bearing Note Receivable

Johnson Ltd completed the following transaction during 2014 and 2015. Prepare journal entries to record these transactions.

October 14 Sold merchandise to Bruce Company, receiving a 60-day, 9% note for $10,000.
November 16 Sold merchandise to Marine Company receiving a 72-day, 8% note for $9,100.
December 13 Received amount due from Bruce Company.
December 31 Accrued interest on the Marine Company note.

January 27 Received amount due from Marine Company.

Solution Summary

Showing journal entries to record Interest-bearing Notes Receivable, Interest Accrued, and Interest Earned.