Journalizing note receivable transactions Hot Heat Steam Cleaning performs services on account. When a customer account becomes four months old, Hot Heat converts the account to a note receivable. During 2012, the company completed the following transactions:
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28Apr |
Performed service on account for Sinclair Club, $18,000. |
|
1Sep |
Received an $18,000, 60 day, 9% note from Sinclair Club in satisfaction of its past due account receivable. |
|
31Oct |
Collected the Sinclair Club note at maturity. |
Requirement
1. Record the transactions in Hot Heat’s journal.