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15 August, 11:05

On January 10, 2017, Perez Co. sold merchandise on account to Robertsen Co. for $24,600, n/30. On February 9, Robertsen Co. gave Perez Co. a 11% promissory note in settlement of this account. Prepare the journal entry to record the sale and the settlement of the account receivable.

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  1. 15 August, 11:20
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    Two entries are made one for sale and the other for the promissory note.

    Perez Co

    Date Particulars Debit Credit

    January 10, 2017 Accounts Receivable $24,600, Dr

    Merchandise $24,600, Cr

    Sale of merchandise on account to Robertsen Co. for $24,600, n/30.

    February 9, Notes Receivable $ 24600 Dr

    Accounts Receivable $24,600 Cr

    Robertsen Co. gave Perez Co. a 11% promissory note in settlement of this account.

    As this note is given within the 30 days no cash has been paid in settlement of the accounts receivable. If any cash had been paid the entry would have been different.
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