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RecRoom Equipment Company received an $8,000, six-month, 6 percent note to settle an $8,000 unpaid...

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Question

Accounting

RecRoom Equipment Company received an $8,000, six-month, 6 percent note to settle an $8,000 unpaid balance owed by a
customer.
a. The note is accepted by RecRoom on November 1, causing the company to increase its Notes Receivable and decrease its
Accounts Receivable.
b. RecRoom adjusts its records for interest earned to its December 31 year-end.
c. RecRoom receives the interest on the note's maturity date.
d. RecRoom receives the principal on the note's maturity date.
Required:
Prepare journal entries to record the above transactions for RecRoom. (If no entry is required for a transaction/event, select "No
Journal Entry Required" in the first account field. Do not round intermediate calculations.)
Journal entry worksheet
Record the receipt of a note on November 1 for $8,000 to settle an
outstanding accounts receivable balance of a customer.
Note: Enter debits before credits.
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