On Sept 1, 2015, Jefferson Corp. sold $285,000 of x ray equipt. to Einstein General who agreed to pay within 20 days. Additionally, if Einstein paid within 7 days they would receive a 2% discount. Record the following journal entries:
Record Jefferson's transaction of Sept 1 with Einstein.
Record the payment made to Jefferson if paid within the last day of the discount period.
Record the transaction granting Einstein an additional 30 days to pay at 9% interest.
Record the payment made to Jefferson at the end of the extension of time.
Record the transaction to write off the Einstein account (use #4 at your basis.
Record the transaction if Einstein does not pay the note at the end of the extension of time.
Record the transaction to record payment received Feb 15, 2016