Record journal entries for the following transactions of Wind Solutions. Jan. 1, 2018 Issued a $2,350,100 note to customer Solar Plex as terms of a merchandise sale. The merchandise’s cost to Wind Solutions is $1,002,650. Note contract terms included a 24-month maturity date, and a 2.1% annual interest rate. Dec. 31, 2018 Wind Solutions records interest accumulated for 2018. Dec. 31, 2019 Wind Solutions converts Solar Plex’s dishonored note into account receivable. This includes accumulated interest for the 24-month period. Mar. 8, 2020 Wind Solutions sells the outstanding debt from Solar Plex to a collection agency at 25% of the accounts receivable value
Record journal entries for the following transactions of Wind Solutions. Jan. 1, 2018 Issued a $2,350,100 note to customer Solar Plex as terms of a merchandise sale. The merchandise’s cost to Wind Solutions is $1,002,650. Note contract terms included a 24-month maturity date, and a 2.1% annual interest rate. Dec. 31, 2018 Wind Solutions records interest accumulated for 2018. Dec. 31, 2019 Wind Solutions converts Solar Plex’s dishonored note into account receivable. This includes accumulated interest for the 24-month period. Mar. 8, 2020 Wind Solutions sells the outstanding debt from Solar Plex to a collection agency at 25% of the accounts receivable value
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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Question
Record
Jan. 1, 2018 Issued a $2,350,100 note to customer Solar Plex as terms of a
merchandise sale. The merchandise’s cost to Wind Solutions is $1,002,650. Note
contract terms included a 24-month maturity date, and a 2.1% annual interest rate.
Dec. 31, 2018 Wind Solutions records interest accumulated for 2018.
Dec. 31, 2019 Wind Solutions converts Solar Plex’s dishonored note into account
receivable. This includes accumulated interest for the 24-month period.
Mar. 8, 2020 Wind Solutions sells the outstanding debt from Solar Plex to a
collection agency at 25% of the
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