Question -
1. Record the following transactions for Pro Line Communications Inc in the general journal
May 30: Accepted a 60-day, 12% note for $11,000 from Photo Master as payment on an accounts receivable
May 29: Received interest due on Photo Master note. The note is renewed for 45 days at 13% interest
May 28: Received full payment of the Photo Master note
2. Prepare the general journal entries for American Diner for the following notes receivable transactions (assuming there are 28 days in February)
Dec 3: Sold merchandise to Brian Wang on account, $6,900.
Jan 2: Received a $6,900, 10%, 30-day note from Brian Wang in payment of account.
Feb 1: Received $600, plus interest on January 2 note, and a new, 14% 60-day note for the remaining balance.