Journalize the following transactions in the accounts of Powerplay Co., which operates a riverboat casino:
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Mar. 1. |
Received a $45,000, 60 day, 6% note dated March 1 from Pynn Co. on account. |
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18 |
Received a $24,000, 60 day, 9% note dated March 18 from Abode Co. on account. |
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Apr. 30. |
The note dated March 1 from Pynn Co. is dishonored, and the customer’s |
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account is charged for the note, including interest. |
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May 17. |
The note dated March 18 from Abode Co. is dishonored, and the customer’s |
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account is charged for the note, including interest. |
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July 29. |
Cash is received for the amount due on the dishonored note dated March 1 |
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plus interest for 90 days at 8% on the total amount debited to Pynn Co. on |
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April 30. |
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Aug. 23. |
Wrote off against the allowance account the amount charged to Abode Co. on |
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May 16 for the dishonored note dated March 18. |