Question
On January 1, 2019, Titanium Corporation sold goods for P720,000. The terms of the sale were as follows: P180,000 down payment and P180,000 payable every
On January 1, 2019, Titanium Corporation sold goods for P720,000. The terms of the sale were as follows:
P180,000 down payment and
P180,000 payable every January 1 each of the next three years starting January 1, 2020
The agreement of the sale made no mention of interest; however, 12% would be a fair rate for this type of transaction.
Required: Prepare all the necessary journal entries for 2019.
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
14th Edition
1119707110, 978-1119707110
