On May 1, 2020, People's Networks sold computer networking supplies toFlorida Autos for $46,300. The cost of the supplies is $20,835. Instead ofpaying immediately, Florida Autos signed a note receivable with 10% annualinterest, payable in eight months with the principle amount. People'sNetworks has a year end of October 31.Do not enter dollar signs or commas in the input boxes.Round all answers to the nearest whole number.For transaction with two debits or credits, enter the debit accounts inalphabetical order followed by the credit accounts in alphabetical order.a) Record the journal entry when the sale is made; assume People'sNetworks uses the perpetual inventory system.DateAccount Title and ExplanationDebitCreditMay 1To record sales for notesreceivableMay 1To record cost of goods soldb) Prepare journal entries for the year end adjustment on October 31, 2020.DateAccount Title and ExplanationDebitCreditOct 31To record accrued interestrevenuec) Prepare journal entries for receipt of payment from Florida Autos onJanuary 1, 2021.DateAccount Title and ExplanationDebitCreditJan 1To record the receipt of paymentfor principle and interest

working notes : b) ($ 46,300*10%*6/12) =$ 2,315 c) ($ 46,300*10%*2/12) =$771.66

On May 1, 2020, People's Networks sold computer networking supplies to Florida Autos for $46,300. The cost of the supplies is $20,835. Instead of paying immediately, Florida Autos signed a note receivable with 10% annual interest, payable in eight months with the principle amount. People's Networks has a year end of October 31. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. For transaction with two debits or credits, enter the debit accounts in alphabetical order followed by the credit accounts in alphabetical order. a) Pocord the journal ontry whon the sale is made: assu me Rooplo's

On May 1, 2020, People's Networks sold computer networking supplies to Florida Autos for $46,300. The cost of the supplies is $20,835. Instead of paying immediately, Florida Autos signed a note receivable with 10% annual interest, payable in eight months with the principle amount. People's Networks has a year end of October 31. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. For transaction with two debits or credits, enter the debit accounts in alphabetical order followed by the credit accounts in alphabetical order. a) Pocord the journal ontry whon the sale is made: assu me Rooplo's

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6MC

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