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Question 14 3 pts Gamma Company sold $120,000 of goods and accepted the customer's $120,000 10%, 1- year note receivable in exchange. Assuming 10%
Question 14 3 pts Gamma Company sold $120,000 of goods and accepted the customer's $120,000 10%, 1- year note receivable in exchange. Assuming 10% approximates the market rate of return, what would be the journal entry to record the sale? PV$1 (10%, 1) = 0.90909. Debit Notes Receivable for $109,090.80 and Credit Sales Revenue for $109,090.80 O Debit Notes Receivable for $120,000, credit Discount on Notes Receivable for $10,909.02, and Credit Sales Revenue for $109,090.80 No journal entry until cash is collected. Debit Accounts Receivable for $109,090.80, Debit Prepaid Interest Revenue for $10,909.02, and Credit Sales Revenue for $120,000
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