Mix Recording Studios purchased $7,800 in electronic components from TechCom.Mix Recording Studios signed a 60-day,10% promissory note for $7,800.TechCom's journal entry to record the sales portion of the transaction is:
A) $\begin{array}{|l|r|r|}
\hline \text { Accounts Receivable } & 7,800 & \
\hline \text { Sales } & & 7,800 \
\hline
\end{array}$

B) $$\begin{array} { | l | r | r | }
\hline \text { Accounts Receivable } & 7,930 & \
\hline \text { Sales } & & 7,930 \
\hline
\end{array}$$
C) $$\begin{array} { | c | r | r | }
\hline \text { Notes Receivable } & 7,800 & \
\hline \text { Sales } & & 7,800 \
\hline
\end{array}$$
D) $$\begin{array} { | c | r | r | }
\hline \text { Notes Receivable } & 7,930 & \
\hline \text { Sales } & & 7,930 \
\hline
\end{array}$$
E) $$\begin{array} { | l | r | r | }
\hline \text { Notes Receivable } & 7,800 & \
\hline \text { Interest Receivable } & 130 & \
\hline \text { Sales } & & 7,930 \
\hline
\end{array}$$

Question

Mix Recording Studios purchased $7,800 in electronic components from TechCom.Mix Recording Studios signed a 60-day,10% promissory note for $7,800.TechCom's journal entry to record the sales portion of the transaction is:
A) $\begin{array}{|l|r|r|}
\hline \text { Accounts Receivable } & 7,800 & \
\hline \text { Sales } & & 7,800 \
\hline
\end{array}$

B) $$\begin{array} { | l | r | r | } 
\hline \text { Accounts Receivable } & 7,930 & \
\hline \text { Sales } & & 7,930 \
\hline
\end{array}$$
C) $$\begin{array} { | c | r | r | } 
\hline \text { Notes Receivable } & 7,800 & \
\hline \text { Sales } & & 7,800 \
\hline
\end{array}$$
D) $$\begin{array} { | c | r | r | } 
\hline \text { Notes Receivable } & 7,930 & \
\hline \text { Sales } & & 7,930 \
\hline
\end{array}$$
E) $$\begin{array} { | l | r | r | } 
\hline \text { Notes Receivable } & 7,800 & \
\hline \text { Interest Receivable } & 130 & \
\hline \text { Sales } & & 7,930 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The correct entry records the note as a Notes Receivable for the principal amount of $7,800, which is the sales amount. Interest is not recorded at the time of sale but accrued over time.

Mix Recording Studios Purchased $7,800 in Electronic Components from TechCom Accounts Receivable 7,800 Sales 7,800\begin{array}{|l|r|r|}\hline \text { Accounts Receivable } & 7,800 & \\\hline \text { Sales } & & 7,800 \\\hline\end{array} Accounts Receivable Sales ​7,800​7,800​​

Mix Recording Studios Purchased $7,800 in Electronic Components from TechCom $\begin{array}{|l|r|r|}\hline \text { Accounts Receivable } & 7,800 & \\\hline \text { Sales } & & 7,800 \\\hline\end{array}$