Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need correct answer for this part Cambria Limited took a $500,000 two-year note receivable from a customer in connection with a major inventory sale

image text in transcribed
image text in transcribed
I need correct answer for this part
Cambria Limited took a $500,000 two-year note receivable from a customer in connection with a major inventory sale transaction on 1 January 20x6. The note required annual end-of-year interest payments of 4%, and the principal was due at the end of 20x6. (PV of $1. PVA of $1. and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare journal entries to record the initial sale transaction and each payment on the books of Cambria, assuming that the market time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) interest rate is 4%. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round 3. Prepare journal entries to record the initial sale transaction and each payment on the books of Cambria, consistent with requirement 2. Use the gross method to record the note. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) Answer is not complete. No Date General Journal Debit Credit 1 1 January 20X5 Notes receivable 500,000 Sales revenue 500,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Survey Of Financial And Managerial Accounting

Authors: Roger H. Hermanson, Roland F. Salmonson, James D. Edwards

5th Edition

025606976X, 978-0256069761

Students also viewed these Accounting questions