Chapter 7 - Cash and Receivables - Review and Practice - Brief Exercises - Page 363: BE7-9

Chung, Inc. Cash.................................................................................... 730,000 Finance Charge .................................................................. 20,000* …………………….Notes Payable.......................................................... 750,000 Seneca National Bank Notes Receivable.............................................................. 750,000 ………………………………Cash................................................................ 730,000 ………………………………Financing Revenue ........................................20,000*

1,000,000 X 2% = 20, 000*