Resin Milling issued a $420,000 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $181,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 7% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity If an amount box does not require an entry, leave it blank. Jan. 1, 2018 Notes Receivable Notes Receivable Sales Revenue Sales Revenue To record sale in exchange for notes receivable, 24-month maturity, 7% interest rate Jan. 1, 2018 Cost of Goods Sold Cost of Goods Sold Merchandise Inventory Merchandise Inventory To record the cost of sale Jan. 1, 2020 - Select - - Select - - Select - - Select - - Select - - Select - To record conversion of note to Accounts Receivable, dishonored note
Resin Milling issued a $420,000 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $181,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 7% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity If an amount box does not require an entry, leave it blank. Jan. 1, 2018 Notes Receivable Notes Receivable Sales Revenue Sales Revenue To record sale in exchange for notes receivable, 24-month maturity, 7% interest rate Jan. 1, 2018 Cost of Goods Sold Cost of Goods Sold Merchandise Inventory Merchandise Inventory To record the cost of sale Jan. 1, 2020 - Select - - Select - - Select - - Select - - Select - - Select - To record conversion of note to Accounts Receivable, dishonored note
Resin Milling issued a $420,000 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $181,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 7% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity If an amount box does not require an entry, leave it blank. Jan. 1, 2018 Notes Receivable Notes Receivable Sales Revenue Sales Revenue To record sale in exchange for notes receivable, 24-month maturity, 7% interest rate Jan. 1, 2018 Cost of Goods Sold Cost of Goods Sold Merchandise Inventory Merchandise Inventory To record the cost of sale Jan. 1, 2020 - Select - - Select - - Select - - Select - - Select - - Select - To record conversion of note to Accounts Receivable, dishonored note
Resin Milling issued a $420,000 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $181,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 7% annual interest rate. The customer does not pay on its account and dishonors the note.
Record the journal entries for Resin Milling for the following transactions.
A. Initial sale on January 1, 2018
B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
If an amount box does not require an entry, leave it blank.
Jan. 1, 2018
Notes Receivable
Notes Receivable
Sales Revenue
Sales Revenue
To record sale in exchange for notes receivable, 24-month maturity, 7% interest rate
Jan. 1, 2018
Cost of Goods Sold
Cost of Goods Sold
Merchandise Inventory
Merchandise Inventory
To record the cost of sale
Jan. 1, 2020
- Select -
- Select -
- Select -
- Select -
- Select -
- Select -
To record conversion of note to Accounts Receivable, dishonored note
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
Expert Solution
Step 1
Journal Entries: are the first recording of any transaction in the books of accounts. These entries initialize the accounting process of a transaction.
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