Monday, August 15, 2011

Co.agreed to a sale for $2500 payment in 30days but did not pay.Co.offered 4month 11.5%interest.Journal notes?

Mulkey Micro Brevery sells cases of beer to local restaurants and pubs. A new restaurant, Primo, agreed to a sale for $2500, with payment in thirty days. After thirty days, Primo's did not have the cash for payment: therefore, Primo's offered Mulkey a 4 month note with 11.5% interest, all payable at the end of the term of the note. Please record the appropriate journal entry establishing the note on Mulkey's books.

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