Question: Refer to the information in E5-15.
Required: For Whole Grain Bakery, record the issuance of the note payable on March 1 and the cash payment on September 1.
E5-15: On March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some recent food poisoning complaints. Legal services total $10,000. In payment for the services, Whole Grain Bakery signs a 10% note requiring the payment of the face amount and interest to Terrell & Associates on September 1.
Required: For Terrell & Associates, record the acceptance of the note receivable on March 1 and the cash collection on September 1.