On December 1, 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 note at 12% interest. Parsons accrues interest only at year-end. On September 1, Parsons collected the whole amount due. Please provide the journal entry needed to record the settlement of the note.

Question

On December 1, 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 note at 12% interest. Parsons accrues interest only at year-end. On September 1, Parsons collected the whole amount due. Please provide the journal entry needed to record the settlement of the note.
On December 1, 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 note at 12% interest. Parsons accrues interest only at year-end. On September 1, Parsons collected the whole amount due. Please provide the journal entry needed to record the settlement of the note.

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The Answer of On December 1, 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 note at 12% interest. Parsons accrues interest only at year-end. On September 1, Parsons collected the whole amount due. Please provide the journal entry needed to record the settlement of the note.

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