On March 9 Hill gave McGraw Company a 60-day 10% promissory note for $2500. Hill dishonors the note on May 9. Record the entry that McGraw would make when the note is dishonored assuming that no interest has been accrued.

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Sheridan Harris · Accepted Answer

Final Answer :   May 9  Accounts Receivable-Hill  2 , 542  Interest Revenue  ( $ 2 , 500 × 10 % × 60 / 360 ) 42  Note Receivable  2 , 500 \begin{array}{lll}	ext { May 9} & 	ext {  Accounts Receivable-Hill }  & 2,542\ & 	ext { Interest Revenue }(\$ 2,500 	imes 10 \% 	imes 60 / 360) & & 42 \ & 	ext { Note Receivable } & & 2,500 \\end{array}  May 9 ​  Accounts Receivable-Hill   Interest Revenue  ( $2 , 500 × 10% × 60/360 )  Note Receivable  ​ 2 , 542 ​ 42 2 , 500 ​

On March 9 Hill gave McGraw Company a 60-day 10% promissory note for $2500. Hill dishonors the note on May 9. Record the entry that McGraw would make when the note is dishonored assuming that no interest has been accrued.

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