On January 1, Ajax Corp Accepted a One-Year Note for $5,000

question 101

Essay

On January 1, Ajax Corp 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 the company treated it as a dishonored note. Provide the journal entry for the dishonor of the note in the books of the company.

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Definitions:

Personnel Expenses

Costs associated with employee compensation, including wages, benefits, and payroll taxes.

Client-Visits

The instances when a service provider meets with their clients, either in person or virtually, for consultation or service delivery.

Planning Budget

A financial plan that estimates the revenue and expenses for an organization over a specific period, taking into account projected operations and initiatives.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding deductions for interest and taxes.