Prepare the journal entries for Fit City Company for the following transactions:
a)Fit City sold $7,500 of merchandise to AllSport Company on account.The company uses the periodic method.
b)Fit City received a 120-day,$7,500,8% note for a time extension of past-due account of AllSport.
c)Collected the AllSport note on the maturity date.

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The Answer of Prepare the journal entries for Fit City Company for the following transactions:
a)Fit City sold $7,500 of merchandise to AllSport Company on account.The company uses the periodic method.
b)Fit City received a 120-day,$7,500,8% note for a time extension of past-due account of AllSport.
c)Collected the AllSport note on the maturity date.

Prepare the Journal Entries for Fit City Company for the Following