Prepare journal entries to record the following transactions entered into by Fli

Question

Prepare journal entries to record the following transactions entered into by Flip Company: 2012 June 1 Received a $10,000, 12%, 1-year note from Flop as full payment on her account. Nov. 1 Sold merchandise on account to Flap, Inc. for $12,000, terms 2/10, n/30. Nov. 5 Flap, Inc. returned merchandise worth $500. Nov. 9 Received payment in full from Flap, Inc. Dec. 31 Accrued interest on Flop's note. 2013 June 1 Flop honored her promissory note by sending the face amount plus interest. No interest has been accrued in 2013

Explanation / Answer

Hi, If you like my answer rate me lifesaver first...that way only I can earn points. Thanks Journal entries are June 1 Notes receivable ... dr = $10000 Cash (any other account due) .... credit = $10000 Nov 1. Accounts Receivable ... dr =$12000 Sales ... Cr = $12000 Nov 5. Account Recievable ... cr =$500 Sales... dr = $500 Nov 9 Cash... Dr = $11500 Account Recievable ... cr =$11500 dec 31 accrued interest ... dr = $600 Interest ... Cr = $600 2013 june 1 Cash .. dr = $11200 accrued interest ... cr = $600 Interest ... Cr = $600 Notes ... cr = $10000

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