On 1 December 2013, Parsons Sales sold machinery to a customer for $2 000. The customer could not pay at the time of sale, but agreed to pay 9 months later, and signed a 9- month bill at 12% interest. Parsons accrues interest only at year- end. On 1 September, Parsons collected the whole amount due. Please provide the journal entry needed to record the settlement of the bill.

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The Answer of On 1 December 2013, Parsons Sales sold machinery to a customer for $2 000. The customer could not pay at the time of sale, but agreed to pay 9 months later, and signed a 9- month bill at 12% interest. Parsons accrues interest only at year- end. On 1 September, Parsons collected the whole amount due. Please provide the journal entry needed to record the settlement of the bill.

On 1 December 2013, Parsons Sales Sold Machinery to a Customer