All American Storage Corporation sold merchandise with credit terms of 2/10, n/30, for $100,000 to a customer on January 1, 2019. Nine months later, on October 1, 2019 the company accepted a 12%, 6-month note receivable in settlement of the account. The customer paid the maturity value of the note on the due date.
Prepare the following journal entries:
A) Record the sale of merchandise on January 1, 2019.
B)Record the receipt of the note receivable on October 1, 2019.
C) Record the adjusting entry to accrue interest on December 31, 2019.
D)What is the due date of the note?
E) Record the collection of the note on the due date.
Correct Answer:
Verified
Q118: The following information was taken from the
Q119: This company sells merchandise only on credit.
Q120: This company sells its merchandise only on
Q121:
You are the credit manager at
Q122: Alpha Company's accounts receivable and allowance for
Q124: The following information is available for All-4-U
Q126: The following comparative financial statements for the
Q127: What is the purpose of an aging
Q128: Airport Support Company reported its accounts receivable
Q189: Identify two methods of accelerating cash from
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents