18. On August 20, Walter Manufacturing Ltd agrees to exchange its accounts payable for a 90-day, 12%, $8,000 note from Fidalgo Company. What is the journal entry made by Fidalgo Company to record the transaction? a. Debit Notes Payable $8,000; credit Accounts Payable $8,000. b. Debit Accounts Receivable $8,000; credit Notes Payable $8,000. Debit Sales $8,000; credit Notes Payable $8,000. C. d. Debit Cash $8,000; credit Notes Payable $8,000. e. Debit Accounts Payable $8,000; credit Notes Payable $8,000.

18. On August 20, Walter Manufacturing Ltd agrees to exchange its accounts payable for a 90-day, 12%, $8,000 note from Fidalgo Company. What is the journal entry made by Fidalgo Company to record the transaction? a. Debit Notes Payable $8,000; credit Accounts Payable $8,000. b. Debit Accounts Receivable $8,000; credit Notes Payable $8,000. Debit Sales $8,000; credit Notes Payable $8,000. C. d. Debit Cash $8,000; credit Notes Payable $8,000. e. Debit Accounts Payable $8,000; credit Notes Payable $8,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
6. Prepare general journal entries for the following transactions of Salvador Company. April 30 Received a $5,000, 6%, 30-day note receivable from Juan Co. as settlement for its $5,000 account receivable. May 30 The note received from Juan on April 30 was collected in full.
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