Question
Sally's Jewelry sold diamonds $192,000 to Marco's Jewelry, receiving a six-month, noninterest bearing note for $200,000 on December 1, 2020. The implied discount rate on
Sally's Jewelry sold diamonds $192,000 to Marco's Jewelry, receiving a six-month, noninterest bearing note for $200,000 on December 1, 2020. The implied discount rate on the note is 8% per annum. Sally uses a periodic inventory system.
1. Prepare the journal entry to record the sale. 2. Prepare any adjusting entry on December 31, 2020. 3. Prepare a journal entry at maturity June 1, 2021.
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Accounting concepts and applications
Authors: Albrecht Stice, Stice Swain
11th Edition
978-0538750196, 538745487, 538750197, 978-0538745482
