Celoron Power Boat Company is in the power boat manufacturing business. As of 2010 September 1,… 1 answer below »

Celoron Power Boat Company is in the power boat manufacturing business. As of 2010 September 1, the balance in its Notes Receivable account is USD

256,000. The balance in Dishonored Notes Receivable is USD 60,660 (includes the interest of USD 600 and the protest fee of USD 60). A schedule of the notes (including the dishonored note) is as follows:

Face

Date

Interest

Amount

Maker

of Note

Life

Rate

$ 100,000

C. Glass Co.

2009/6/01

120 days

12%

72,000

A. Lamp Co.

2009/6/15

90

8

84,000

C. Wall Co.

2009/7/01

90

10

60,000

N. Case Co.

2009/7/01

60

6

$316,000

Following are Celoron Power Boat Company"s transactions for September:

Sept. 10 Received USD 36,660 from N. Case Company as full settlement of the amount due from it. The company does not charge losses on notes to the Allowance for Uncollectible Accounts account.

? The A. Lamp Company note was collected when due.

? The C. Glass Company note was not paid at maturity.

? C. Wall Company paid its note at maturity.

30 Received a new 60-day, 12 percent note from C. Glass Company for the total balance due on the dishonored note. The note was dated as of the maturity date of the dishonored note. Celoron Power Boat Company accepted the note in good faith. Prepare dated journal entries for these transactions.

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