On November 1, 2014, Yellow Grove Co. sold $45,000 of goods and accepted a note bearing 8% interest. The note was due in one year.
Required:
a.Prepare a reversing entry for January 1, 2015.
b.Record the collection of the note on October 31, 2015.

Question

On November 1, 2014, Yellow Grove Co. sold $45,000 of goods and accepted a note bearing 8% interest. The note was due in one year.
Required: 
a.Prepare a reversing entry for January 1, 2015.
b.Record the collection of the note on October 31, 2015.

Quizplus · Accepted Answer

The Answer of On November 1, 2014, Yellow Grove Co. sold $45,000 of goods and accepted a note bearing 8% interest. The note was due in one year.
Required: 
a.Prepare a reversing entry for January 1, 2015.
b.Record the collection of the note on October 31, 2015.