On September 1, 2013, Geco Co. sold $40,000 of goods and accepted a one-year, 12% note.
Required:
a. If no reversing entries were made after December 31, 2013, and adjusting entries were made, record the collection of the note on September 1, 2014.
b. Assume instead that a noninterest-bearing note for $44,800 for the same goods was issued. What balance sheet accounts and amounts would be disclosed on December 31, 2013?

Question

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The Answer of On September 1, 2013, Geco Co. sold $40,000 of goods and accepted a one-year, 12% note.
Required:
a. If no reversing entries were made after December 31, 2013, and adjusting entries were made, record the collection of the note on September 1, 2014.
b. Assume instead that a noninterest-bearing note for $44,800 for the same goods was issued. What balance sheet accounts and amounts would be disclosed on December 31, 2013?