Ask Question
BusinessBusiness
5 January, 03:37

Brief Exercise 7-07 Grouper Family Importers sold goods to Tung Decorators for $33,600 on November 1, 2020, accepting Tung's $33,600, 6-month, 5% note. Prepare Grouper's November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest

+4
Answers (1)
  1. 5 January, 04:03
    0
    Answer with its Explanation:

    The accounting treatment are as under:

    The note was issued because the customer required 6 months time to pay along with its interest.

    The initial entry would be:

    Dr Notes Receivable 33600

    Cr Sales Revenue 33,600

    When the interest would be due at the end of the note period the interest which is 5% for a year and 2.5% for 6 months.

    Dr Interest Receivable 840

    Cr Interest Revenue 840

    When the cash will be paid the entry would be:

    Dr Cash 34,440

    Cr Notes Receivable 33,600

    Cr Interest Receivable 840
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Brief Exercise 7-07 Grouper Family Importers sold goods to Tung Decorators for $33,600 on November 1, 2020, accepting Tung's $33,600, ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The crawford company has 3,000 units in beginning finished goods. the sales budget shows expected sales to be 12,000 units. if the production budget shows that 14,000 units are required for production, what was the desired ending finished goods?
Answers (1)
During 2017, Vision Company purchased treasury stock for $16,000, paid dividends of $20,000, purchased land for $50,000, and issued bonds payable for net proceeds of $860,000.
Answers (1)
State the general compass direction in which maple stream is flowing
Answers (1)
The following is selected financial data from Courtney Manufacturing for the most recent year. Ending raw materials inventory $21,500 Ending work in process inventory $44,400 Ending finished goods inventory $53,300 Amount of underallocated
Answers (1)
Keegan Inc. budgeted? 10,500 pounds of direct materials costing? $18.00 per pound to make? 4,900 units of product. The company actually purchased? 10,600 pounds of direct materials costing? $27.50 per pound to make the? 4,900 units.
Answers (1)
New Questions in Business
Which piece of educational information is normally not asked about on a job application?
Answers (1)
Which of the following is a strategy that you can use to protect yourself from the risks involved in owning a home? Pay PMI. Buy a product warranty. Purchase homeowner's insurance. Take advantage of the Truth in Lending Act.
Answers (1)
Sunset Foods relies on a highly centralized functional structure to ensure consistency in the quality and taste of its products and to drive down costs via process innovations.
Answers (1)
Ignoring issues of the statute of frauds, is there a contract for the sale of vinny's celica?
Answers (1)
The management of Retz Corporation is considering the purchase of a new machine costing $500,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.
Answers (1)
Home » Business » Brief Exercise 7-07 Grouper Family Importers sold goods to Tung Decorators for $33,600 on November 1, 2020, accepting Tung's $33,600, 6-month, 5% note.
Sign Up Forgot Password?