Response to the following questions:
1. What are the three classifications of receivables?
2. What types of transactions give rise to accounts receivable?
3. In what section of the balance sheet should a note receivable be listed if its term is (a) 120 days, (b) six years?
4. Give two examples of other receivables.
5. The note receivable dishonored in Question is paid on May 30 by the maker, plus interest for 30 days, 9%. What entry should be made to record the receipt of the payment?
Question : The maker of a $6,000, 10%, 120-day note receivable failed to pay the note on the due date of April 30. What accounts should be debited and credited by the payee to record the dishonored note receivable?