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Accounting for Notes Receivable Yarnell Electronics sells computer systems to small businesses. Yarnell engaged in the following activities involving notes receivable: On September 1 ,

Accounting for Notes Receivable
Yarnell Electronics sells computer systems to small businesses. Yarnell engaged in the following activities involving notes receivable:
On September 1, Yarnell sold a $5,000 system to Ross Company. Ross gave Yarnell a 6-month, 11% note as payment.
On December 1, Yarnell sold an $8,100 system to Searfoss Inc. Searfoss gave a 9-month, 10% note as payment.
On March 1, On March 1, Ross paid the amount due on its note.
On September 1, Searfoss paid the amount due on its note.
Required:
Question Content Area
Prepare the necessary journal and adjusting entries for Yarnell Electronics to record these transactions. If an amount box does not require an entry, leave it blank. If required, round your answers to two decimal places.
Note from Ross Company:
Sept. 1
Notes Receivable
5,000
Sales Revenue
5,000
(Record sale)
Dec. 31
Interest Receivable
Interest Income
(Record accrued interest income)
Mar. 1
Cash
Notes Receivable
5,000
Interest Receivable
Interest Income
(Record collection of note receivable)
Question Content Area
Note from Searfoss Inc.:
If an amount box does not require an entry, leave it blank. If required, round your answers to two decimal places.
Dec. 1
Notes Receivable
Sales Revenue
(Record sale)
Dec. 31
Interest Receivable
Interest Income
(Record accrued interest income)
Sept. 1
Cash
Notes Receivable
Interest Receivable
Interest Income
(Record collection of note)

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