On July 1, 2017, Cheyenne Inc. made two sales.

1.	It sold land having a fair value of $907,040 in exchange for a3-year zero-interest-bearing promissory note in the face amount of $1,240,498. The land is carried on Cheyenne's books at a cost of $596,000.
2.	It rendered services in exchange for a4%,6-year promissory note having a face value of $406,680 (interest payable annually).

Cheyenne Inc. recently had to pay9% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at11% interest.

Record the two journal entries that should be recorded by Cheyenne Inc. for the sales transactions above that took place on July 1, 2017.(Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. 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.)

No.

Date

Account Titles and Explanation

Debit

Credit

1.

July 1, 2017

2.

July 1, 2017

Exercise 7-20 Presented below is information for Ivanhoe Company.

1.	Beginning-of-the-year Accounts Receivable balance was $22,900.
2.	Net sales (all on account) for the year were $107,300. Ivanhoe does not offer cash discounts.
3.	Collections on accounts receivable during the year were $83,900.

(a) Prepare (summary) journal entries to record the items noted above.(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.)

No.	Account Titles and Explanation	Debit	Credit
1.
2.
3.

E 7-4

Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $2,535per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $138,580as shown in the ledger.

The following information is available for yourfirst yearin business.

(1)	Collections from customers	$334,620
(2)	Merchandise purchased	540,800
(3)	Ending merchandise inventory	152,100
(4)	Goods are marked to sell at40% above cost

Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent shortages. Assume that all sales are made on account.

The ending balance of accounts receivable from customers	$
Apparent shortage	$