ABC has the following transactions during 2020: 1. On March 1, 2020, ABC sold merchandise on account to Customer 1 for €7,750. ABC offers a cash-discount of 2% if payment is made within 20 days of the sale. Otherwise the full amount, net of returns and allowances, is due in 30 days. 2. On March 10, 2020, Customer 1 returned merchandise worth €1,550 to ABC. 1. 3.On March 15, 2020, Customer 1 paid for the merchandise. 3. On April 1, 2020, ABC loaned €10,000 to XZ with a 1-year, 10% note. 4. On November 1, 2020, received a €4,000, 6-month, 5% note in exchange for Customer’s 2 outstanding accounts receivable. 5. On December 16, 2020, sold merchandise to Customer 3, receiving a €4,500, 3-months, 8% note. 6. On December 31, 2020, the interest revenue accrued is recognized on all notes receivable. a. Record the collection of note receivable as their mature in 2021.

ABC has the following transactions during 2020: 1. On March 1, 2020, ABC sold merchandise on account to Customer 1 for €7,750. ABC offers a cash-discount of 2% if payment is made within 20 days of the sale. Otherwise the full amount, net of returns and allowances, is due in 30 days. 2. On March 10, 2020, Customer 1 returned merchandise worth €1,550 to ABC. 1. 3.On March 15, 2020, Customer 1 paid for the merchandise. 3. On April 1, 2020, ABC loaned €10,000 to XZ with a 1-year, 10% note. 4. On November 1, 2020, received a €4,000, 6-month, 5% note in exchange for Customer’s 2 outstanding accounts receivable. 5. On December 16, 2020, sold merchandise to Customer 3, receiving a €4,500, 3-months, 8% note. 6. On December 31, 2020, the interest revenue accrued is recognized on all notes receivable. a. Record the collection of note receivable as their mature in 2021.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 15EA: Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise....

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