On October 1,2012,Allen Jewelry Company Accepted a 4-Month,10% Note for $2,400

question 58

Essay

On October 1,2012,Allen Jewelry Company accepted a 4-month,10% note for $2,400 in settlement of an overdue account receivable.If the company accrues interest at year-end only,please provide the journal entry needed at year-end.
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Definitions:

Business Combination

A transaction or other event in which an acquirer gains control of one or more businesses, often involving a merger or acquisition.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Fair Value

The estimated market price of an asset or liability, reflecting current market conditions.

Par Value

A nominal value or face value assigned to a share of stock by the company’s charter.