On January 1,Ajax Company Accepted a One-Year Note for $5,000 $$\begin{array} { | l | l | l | } \hline \quad\quad& \quad&\quad \\\hline & & \\\hline & & \\\hline\end{array}$$

question 47

Essay

On January 1,Ajax Company accepted a one-year note for $5,000 at 4% from one of its customers.When the note matured on December 31,the customer was unable to pay,and Ajax treated it as a dishonored note.Please provide the journal entry needed by Ajax.
$$\begin{array} { | l | l | l | } \hline \quad\quad& \quad&\quad \\\hline & & \\\hline & & \\\hline\end{array}$$

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Definitions:

Arbitration

is the process of resolving disputes outside courts, where a neutral third party makes a decision after hearing both sides.

Trial

A formal examination of evidence before a judge, and typically a jury, in order to decide guilt in a case of criminal or civil proceedings.

Arbitration Award

The decision made by an arbitration panel or arbitrator at the conclusion of an arbitration proceeding.

Fraud

Deliberate deception or trickery intended to gain an unfair or unlawful advantage, typically involving financial transactions.