Question
Supersonic Inc. buy and sells washing machines and dryers across the GTA. Product Selling Price (alone) Cost Washing machine $1,302 $450 Installation 155 - Maintenance
Supersonic Inc. buy and sells washing machines and dryers across the GTA. Product Selling Price (alone) Cost Washing machine $1,302 $450 Installation 155 - Maintenance 93 - On May 1st, 2021 Mohammad orders a washing machine, installation and one-year maintenance plan for a total price of $1460. On June 1st Supersonic delivers the washing machine and bills the customer for the washing machine. The terms is 30 days. On June 2nd the customer pays for the one-year maintenance plan. On June 4th Supersonic installs the machine. On July 1st since the customer didnt pay their bill for the washing machine or installation so they convert the accounts to a one-year interest bearing note that charges a 4% annual interest rate. Prepare any necessary journal entries for 2021 including any year-end adjusting entries
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