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  3. eb16.9.6 element surfboards issued a $210,800 note

EB16.9.6 Element Surfboards issued a $210,800 note on January 1,2018 to a customer, Leona...

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Accounting

EB16.9.6 Element Surfboards issued a $210,800 note on January 1,2018 to a customer,
Leona Marland, in
exchange for merchandise. Terms of the note are 9-month maturity date on October 1,2018
at a 10.2% annual
interest rate. Leona Marland does not pay on her account and dishonors the note. On
December 2,2018,
Element Surfboards decides to sell the dishonored note to a collection agency for 30% of its
value. Record the
journal entries for Element Surfboards for the following transactions.
A. Initial sale on January 1,2018
B. Dishonored note entry on October 1,2018
C. Receivable sale on December 2,2018

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