On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $3,000,000, 8%, 10-year bond that pays semiannual interest of $120,000 ($3,000,000 X 8% X ½ year), receiving cash of $3,000,000.
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Sage Hill Distributors, Inc. had net sales in 2017 of $2,620,000. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $520,000 debit, and Allowance for Doubtful Accounts $2,900 debit.
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