Morton Company Had the Following Select Transactions

question 71

Essay

Morton Company had the following select transactions.
Apr. 1, 2018 Accepted Remington Company's 1-year, 12% note in settlement of a $25,000 account receivable.
July 1, 2018 Loaned $15,000 cash to Jenny Green on a 9-month, 10% note.
Dec. 31, 2018 Accrued interest on all notes receivable.
Apr. 1, 2019 Received principal plus interest on the Remington note.
Apr. 1, 2019 Jenny Green dishonored its note: Morton expects it will eventually collect.
Instructions
Prepare journal entries to record the transactions. Morton prepares adjusting entries once a year on December 31.

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Definitions:

Quick

The ability to do something or the act of doing something with speed or within a short time frame.

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by comparing it to an existing prototype that already exists in our minds.

Prototype

An original model or first form of something from which later versions are patterned; in cognitive science, it refers to a typical example of a category.

Relevant Information

Data or facts that are pertinent and applicable to the matter at hand or to the decision-making process.