Blossom Wholesalers accepts from Gates Stores a $8,000, 4-month, 9% note dated May 31 in settlement of Gates' overdue account.
The maturity date of the note is September 30.
(a1)
Your answer is correct.
Calculate the interest payable at maturity.
Interest payable at maturity
$
240
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List of Accounts
Attempts: 1 of 3 used
(a2)
What entry does Blossom make at the maturity date, assuming Gates pays the note and interest in full at that time? (List all debit
entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit