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On July 31, 2015, the Jupiter Company sold merchandise to a customer for $40,000. The cost of the merchandise was $18,000. In payment, Jupiter agreed
On July 31, 2015, the Jupiter Company sold merchandise to a customer for $40,000. The cost of the merchandise was $18,000. In payment, Jupiter agreed to accept a 7%, 8 month note requiring the payment of interest and principal on March 31, 2016. The 7% rate is appropriate in this situation. Jupiter uses the perpetual inventory system and their year-end is December 31. Prepare journal entries to record the sale of merchandise, the December 31, 2015 interest accrual, and the March 31 collection
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