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On 1 October 2014, Allen Jewellery Company Accepted a 4-

Question 73

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On 1 October 2014, Allen Jewellery Company accepted a 4- month, 10% bill for $2 400 in settlement of an overdue account receivable. Interest revenue was accrued through to 31 December 2014. Allen receives the maturity value of the bill (the original principal plus all of the interest)on the due date. What journal entry is needed when the funds are collected? On 1 October 2014, Allen Jewellery Company accepted a 4- month, 10% bill for $2 400 in settlement of an overdue account receivable. Interest revenue was accrued through to 31 December 2014. Allen receives the maturity value of the bill (the original principal plus all of the interest)on the due date. What journal entry is needed when the funds are collected?

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