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Yarnell Electronics sells computer systems to small businesses. Yarnell engaged in the following activities involving notes receivable: a. On September 1, 2019, Yarnell sold a
Yarnell Electronics sells computer systems to small businesses. Yarnell engaged in the following activities involving notes receivable: a. On September 1, 2019, Yarnell sold a $10,000 system to Ross Company. Ross gave Yarnell a 6-month, 7% note as payment. b. On December 1, 2019, Yarnell sold a $6,000 system to Searfoss Inc. Searfoss gave Yarnell a 9-month, 9% note as payment. C. On March 1, 2020, Ross paid the amount due on its note. d. On September 1, 2020, Searfoss paid the amount due on its note. Required: Prepare the necessary Journal and adjusting entries for Yarnell Electronics to record these transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. If required, round your answers to two decimal places Note from Ross Company: 2019 Sept. 1 Notes Receivable 10,000 Sales Revenue 10,000 Record sale 2019 Dec. 31 Interest Receivable 117 Interest Income 11 Record accrued Interest income 2020 Mar. 1 Cash 10,350 Notes Receivable 10.000 Interest Receivable 117 X Interest Income 233 X Record collection of note receivable
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