Fabulous Felines: Preparing journal entries
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A).October 1: Sold $10,000 of merchandise on account, 1/10, n/30 to Fabulous Felines.
PROBLEM: Record the entry for sale of merchandise on account to Fabulous Felines.
B) November 1: Accepted a $10,000, 90-day, 10% promissory note from Fabulous Felines in exchange for its account receivable.
PROBLEM: Record the entry for acceptance of promissory note in exchange of accounts receivable from Fabulous Felines.
C) December 31: Accrued interest on the note. Round to the nearest whole dollar amount.
PROBLEM:Record the entry for sale of merchandise on account to Fabulous Felines.Record the entry for acceptance of promissory note in exchange of accounts receivable from Fabulous Felines.Record the entry for interest accrued on promissory note received from Fabulous Felines.
D) January 31: Received payment in full of principal and interest on the note from Fabulous Felines.
PROBLEM: Record the entry for sale of merchandise on account to Fabulous Felines.Record the entry for acceptance of promissory note in exchange of accounts receivable from Fabulous Felines.Record the entry for interest accrued on promissory note received from Fabulous Felines.Record the entry for payment received from Fabulous Felines towards promissory note along with interest.
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Solution Summary
Your tutorial is in excel, attached. The entry to record the sale, record the note and compute the interest recognized for Nov, Dec and Jan are shown.
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