Sheffield Family Importers sold goods to Tung Decorators for $32,400 on November
ID: 342414 • Letter: S
Question
Sheffield Family Importers sold goods to Tung Decorators for $32,400 on November 1, 2017, accepting Tung’s $32,400, 6-month, 6% note. Prepare Sheffield’s November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Date Account Titles and Explanation Debit Credit
Explanation / Answer
Journal entry :
Date accounts & explanation debit credit Nov 1,2017 Notes receivable 32400 Sales revenue 32400 (TO record sales) Dec 31,2017 Interest receivable (32400*6%*2/12) 324 Interest revenue 324 (To record accured interest) May 1,2017 Cash 33372 Notes receivable 32400 Interest receivable 324 Interest revenue (32400*6%*4/12) 648 (To record collection of note)Related Questions
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