Response to the following :
1. Refer to the information in problem and prepare the journal entry assuming the note is honored by the customer on October 31, 2011.
Problem:
On August 2, 2011, JLK Co. receives a $5,500, 90-day, 12% note from customer Tom Menke as payment on his $9,000 account. (1) Compute the maturity date for this note. (2) Prepare JLK's journal entry for August 2.
2. Record the sale by Kroll Company of $1,000 in accounts receivable on May 1. Kroll is charged a 3% factoring fee.