Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you explain questions C and D please!!! Thank you! og o NeccIVOVIC. Isso cerrado Detour Marydale Products permits its customers to defer payment by
Can you explain questions C and D please!!! Thank you!
og o NeccIVOVIC. Isso cerrado Detour Marydale Products permits its customers to defer payment by giving personal notes instead of cash. All the notes bear Interest and require the customer to pay the entire nate in a single payment 6 months after issuance. Consider the following transactions, which describe Marydale's experience with two such notes: a. On October 31, 2022, Marydale accepts a 6-month, 12% note from Customer A in lieu of a $3,600 cash payment for merchandise delivered on that day. b. On February 28, 2023, Marydale accepts a 6-month, $5,700, 12% note from Customer B in lieu of a $5,700 cash payment for merchandise delivered on that day. C. On April 30, 2023, Customer A pays the entire note plus interest in cash. d. On August 31, 2023, Customer B pays the entire note plus interest in cash. Required: Prepare the necessary journal and adjusting entries required to record Transactions a through din Marydale's records. For a compound transaction, if those boxes in which no entry is required, leave the box blank. 3,600 | a. 2022, Oct. 31 Notes Receivable Sales Revenue Record sale 3,600 2022, Dec. 31 Interest Receivable 72 72 Interest Income Record accrued interest income 5,700 b. 2023, Feb. 28 Notes Receivable Sales Revenue Record sale 5.700 3,816 c. 2023, Apr. 30 Cash c. Notes Receivable 011 in DIE DO 3.600 Interest Income 144 72 Interest Receivable Record collection of note receivable d. 2023, Aug. 31 Cash Notes Receivable 5,700 Interest Income Record collection of note receivable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started