Johnny mac ran into a cash crunch and was able to pay only, Ask an Expert

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McNamee juices sells products in the health food industry. McNamee sold Johnny Mac merchandise for $5000 on account. Johnny Mac ran into a cash crunch and was able to pay only $1200 in the prescribed period. Both parties agreed to satisfy the remaining balance with a six-month note at 13% interest all payable at the end of the note. Please record the appropriate journal entry establishing the note on McNamee's books.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M975277

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