1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 20-3 Notes Receivable

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 20-3 ACCEPTING A NOTE RECEIVABLE FROM A CUSTOMER 1 2 page 598 April 14. Accepted a 90-day, 8% note from Martin Sterling for an extension of time on his account, $3,000.00. Note Receivable No. 9. 1.Debit to Notes Receivable 2.Credit to Accounts Receivable

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 20-3 COLLECTING PRINCIPAL AND INTEREST ON A NOTE RECEIVABLE 1 234 56 page 599 July 13. Received cash for the maturity value of Note Receivable No. 9, a 90-day, 8% note: principal, $3,000.00, plus interest, $60.00; total, $3,060.00. Receipt No. 562. 7 1.Write the date. 2.Write the account title. 5.On the next line, write the account title. 3.Write the receipt number. 6.Calculate and write the interest income amount. 4.Write the principal amount. 7.Write the maturity value.

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 20-3 RECORDING A DISHONORED NOTE RECEIVABLE 1 2 3 page 600 May 6. Jill Davis dishonored Note Receivable No. 12, a 90-day, 8% note, maturity value due today: principal, $600.00; interest, $12.00; total, $612.00. Memorandum No. 92. 1.Debit to Accounts Receivable 2.Credit to Notes Receivable 3.Credit to Interest Income

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 20-3 TERMS REVIEW notes receivable interest income dishonored note page 602