1.     RECEIVING CASH FOR A NOTE RECEIVABLE2 4 3    
Principal  Interest Rate  Fraction of Year = Interest 30
$  12%  360 = $3.00 1
1. Calculate interest income.
2. Record note.
3. Record interest income.
4. Enter total cash received.
Lesson 10-1, page 279

2.     RECORDING A DISHONORED NOTE RECEIVABLE2 3 4    
Principal  Interest Rate  Fraction of Year = Interest 30
$  12%  360 = $2.50 1
1. Calculate interest income.
2. Record the debit for the total amount receivable.
3. Record credit for the note principal.
4. Record a credit for the interest income.
Lesson 10-1, page 280

3.     RECEIVING CASH FOR A DISHONORED NOTE RECEIVABLE Number
Time of Days
June 1 through (30–1=29)
July 31
August 31
Sept. 1 through
121     1
1. Calculate number of days from maturity date to date of payment.
2. Calculate additional interest income.
3. Record payment of the account receivable.
4. Record additional interest income.
5. Enter total cash received.
Maturity Interest Fraction Additional
Value  Rate  of Year = Interest
121
$  12%  360 = $10.18 2 3 5 4
Lesson 10-1, page 281

4. TERMS REVIEW
notes receivable
dishonored note
Lesson 10-1, page 282