Question
On September 1, 2023, Marin Inc. sold goods to Bramble Corp., a new customer. Before shipping the goods, Marin's credit and collections department conducted a
On September 1, 2023, Marin Inc. sold goods to Bramble Corp., a new customer. Before shipping the goods, Marin's credit and collections department conducted a credit check and determined that Bramble is a high credit-risk customer. As a result, Marin did not provide Bramble with open credit by recording the sale as an account receivable. Instead, Marin required Bramble to provide a non- interest-bearing promissory note for $43,600 face value, to be repaid in one year. Bramble has a credit rating that requires it to pay 9% interest on borrowed funds. Marin pays 7% interest on a loan recently obtained from its local bank. Marin has a December 31 year end. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Prepare the entries required on Marin's books to record the sale annual adiusting entry and collection of the note's full face
please make sure of the journal entries and please input the numbers too. Thanks
(To record interest income) September 1.2024 Cash Notes Receivable (To record collection of the note receivable)Step by Step Solution
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