Equestrain Roads sold $50,000 of goods and accepted the customer's $50,000 10%
1-year note receivable in exchange.Assuming 10% approximates the market rate of return, what would be the debit in this journal entry to record the sale?

Question

Quizplus · Accepted Answer

The debit would be to Notes Receivable for $50,000 since that is the amount that the customer owed to Equestrian Roads in exchange for the goods. The fact that the note has a 10% interest rate does not affect the initial recording of the sale.

Equestrain Roads Sold $50,000 of Goods and Accepted the Customer's