Journalize the following transactions of Trapper Jon’s Productions: June 23. Received a $48,000, 90-day, 8% note dated June 23 from Radon Express Co

Journalize the following transactions of Trapper Jon’s Productions:

June 23. Received a $48,000, 90-day, 8% note dated June 23 from Radon Express Co. on  account.

Sept. 21. The note is dishonored by Radon Express Co.

Oct. 21. Received the amount due on the dishonored note plus interest for 30 days at 10% on the total amount charged to Radon Express Co. on September 21.

Answer:

June 23 Notes Receivable48,000

Accounts Receivable—Radon Express Co. 48,000

 Sept. 21 Accounts Receivable—Radon Express Co. 48,960

Notes Receivable48,000

Interest Revenue960

($48,000 × 0.08 × 90 ÷ 360).

 Oct. 21 Cash49,368

Accounts Receivable—Radon Express Co. 48,960

Interest Revenue408

($48,960 × 0.10 × 30 ÷ 360).