Solution-Record the full payment of the note on december

Record the full payment of the note on december

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Reference no: EM132726256

Rodriguez Carpentry accepts a six month, 8% promissory note from James Matheson on June 1 to settle a $14,000 outstanding account receivable.

Record the following transactions in the general journal:

a) The issuing of the note on June 1.
b) Full payment of the note on December 1.
c) Assume the note is dishonoured on December 1.
On February 1, 2015, Samson Design writes off $2,500 of its accounts receivable as bad debts.

Problem a. Using the direct write-off method, record this transaction.

Problem b. Which GAAP is (are) violated when the direct write-off method is used? Explain your answer.

Reference no: EM132726256

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Record the full payment of the note on december

Reference no: EM132726256

Reference no: EM132726256

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