(a) Note Receivable: Note Receivable is a written document, which can be used for receipt of money in the future in lieu of cash payment in the present time. The journal entry for recording the sale of service on March 1 , 2019 .
(a) Note Receivable: Note Receivable is a written document, which can be used for receipt of money in the future in lieu of cash payment in the present time. The journal entry for recording the sale of service on March 1 , 2019 .
Solution Summary: The author explains how the journal entry for recording the sale of services is made by debiting 7% Note Receivable and crediting the service revenue.
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.
Chapter 5, Problem 54BE
To determine
(a)
Note Receivable:
Note Receivable is a written document, which can be used for receipt of money in the future in lieu of cash payment in the present time.
The journal entry for recording the sale of service on March 1,2019.
To determine
(b)
Note Receivable:
Note Receivable is a written document, which can be used for receipt of money in the future in lieu of cash payment in the present time.
The amount of interest that kelsey will receive on December 1,2019.
To determine
(c)
Note Receivable:
Note Receivable is a written document, which can be used for receipt of money in the future in lieu of cash payment in the present time.
The journal entry for recording the cash received to pay off the note and interest on December 1,2019.
Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Crane can use the
released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign
preceding the number e.g. -45 or parentheses e.g. (45).)
Direct materials
Direct labor
Variable overhead
1A
Fixed overhead
Opportunity cost
Purchase price
Totals
Make
A
Buy
$
SA
Net Income
Increase
(Decrease)
$
Based on the above assumptions, indicate whether the offer should be accepted or rejected?
The offer
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