Ask Question
11 January, 01:52

Giorgio Italian Market bought $4,000 worth of merchandise from Food Suppliers and signed a 90-day, 6% promissory note for the $4,000. Food Supplier's journal entry to record the sales transaction is:A. Debit Accounts Receivable $4,000; credit Sales $4,000B. Debit Notes Receivable $4,000; credit Sales $4,000C. Debit Accounts Receivable $4,060; credit Sales $4,060D. Debit Notes Receivable $4,060; credit Sales $4,060E. Debit Notes Receivable $4,000; debit Interest Receivable $60; credit Sales $4

+3
Answers (1)
  1. 11 January, 04:03
    0
    B. Debit Notes Receivable $4,000; credit Sales $4,000

    Explanation:

    Notice we are asked for hthe entry in the supplier's book:

    The supplier will take the note thus, it will ahve a note receivable as in the future it expect to receive a cashflow.

    The interest will be accrued over time, so are ignored for the moment

    The supplier also has to recognize the amount of sales revenue earned with the sale.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Giorgio Italian Market bought $4,000 worth of merchandise from Food Suppliers and signed a 90-day, 6% promissory note for the $4,000. Food ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers