Jan. 3?, 2018?: Recorded credit sales of $ 106 comma 000. Ignore Cost of Goods S

Question

Jan. 3?, 2018?: Recorded credit sales of $ 106 comma 000. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit 2018 Jan. 3 Oct. ?1, 2018?: Loaned $ 15 comma 000 to Karen Pinket?, an executive with the? company, on a? one-year, 16?% note. Date Accounts and Explanation Debit Credit 2018 Oct. 1 Dec. 31?, 2018?: Accrued interest revenue on the Pinket note. Date Accounts and Explanation Debit Credit 2018 Dec. 31 Oct. ?1, 2019?: Collected the maturity value of the Pinket note. ?(Prepare a single compound journal? entry.) Date Accounts and Explanation Debit Credit 2019 Oct. 1

Explanation / Answer

Date account titles & Explanations Debit Credit 3-Jan Account receivable 106,000 Sales revenue 106,000 1-Oct Note receivable 15,000 cash 15,000 31-Dec interest receivable 600 interest income 600 (15000*16%*3/12) 2019 1-Oct Cash 17,400 interest receivable 600 interest income (15000*16%*9/12) 1800 note receivable 15,000

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