Maturity Value
P = $10,000
R = 6%
T = 60 days
$10,100
P = $10,000
R = 6%
T = 60 days
$100
Sold goods in exchange for a note
Debit Notes Receivable
Credit Sales
Contract Date: March 1
Period of Note: 60 days
April 29th
P = $15,000
R = 8%
T = 90 days
$15,300
P = $15,000
R = 8%
T = 90 days
$300
Received cash and a note to settle an accounts receivable
Debit Cash
Debit Notes Receivable
Credit AR
Contract Date: May 15
Period of Note: 90 days
August 17th
P = $8,000
R = 4%
T = 45 days
$8,040
P = $8,000
R = 4%
T = 45 days
$40
Recording an honored note
Debit Cash
Credit Notes Receivable
Credit Interest Revenue
Contract Date: October 20
Period of Note: 45 days
December 4th
P = $10,000
R = 8%
T = 90 days
$10,200
P = $10,000
R = 8%
T = 90 days
$200
Recording a dishonored note
Debit AR
Credit Interest Revenue
Credit Notes Receivable
Contract Date: June 1
Period of Note: 60 days
July 1st
P = $40,000
R = 10%
T = 180 days
$42,000
P = $40,000
R = 10%
T = 180 days
$2000
Recording accrued interest revenue
Debit Interest Receivable
Credit Interest Revenue
Contract Date: January 5
Period of Note: 30 days
February 4th