Assume That Part of Accounts and Other Receivables on Kittson

Essay

Assume that part of accounts and other receivables on Kittson Company's February 2,2010,balance sheet is comprised of $4,322,500 of notes receivable.Two notes make up the amount.The first note has a face value of $3,000,000 and bears interest at 7 percent for 90 days.The second note has a face value of $1,322,500 and bears interest at 9 percent for 120 days.Record the journal entry for the collection of the 7 percent note on May 3 and the dishonor of the 9 percent note on June 2.(Omit explanations; assume no interest had been accrued.)Round amounts to nearest dollar.