Jax Recording Studio purchased $6,000 in electronic components from Music World.

Question

Jax Recording Studio purchased $6,000 in electronic components from Music World. Jax signed a 120-day, 8% promissory note for $6,000. Music World's journal entry to record the sales transaction is:

Debit Accounts Receivable $6,000; credit Sales $6,000

Debit Notes Receivable $6,160; credit Sales $6,160

Debit Notes Receivable $6,000; credit Sales $6,000

Debit Accounts Receivable $6,160; credit Sales $6,160

Debit Notes Receivable $6,160; debit Interest Receivable $160; credit Sales $6,000

Jax Recording Studio purchased $6,000 in electronic components from Music World. Jax signed a 120-day, 8% promissory note for $6,000. Music World's journal entry to record the sales transaction is:

Explanation / Answer

Answer:

Music World's journal entry to record the sales transaction is:

Debit Notes Receivable $6,000; credit Sales $6,000

at the time of sale music world will record above entry and on maturity they will receive sale amount including interest.

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