Prepare journal entries to record the following transactions entered into by Fli
ID: 2368519 • Letter: P
Question
Prepare journal entries to record the following transactions entered into by Flip Company:
2012
June 1 Accepted 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
Date Title of Account Debit Credit 1-Nov Note Receivable 4000 Cash 4000 1-Nov Account Receivable 9000 Sales 9000 5-Nov Sales return 800 Account Receivable 800 14-Nov Cash 8118 Sales discount 82 Account Receivable 8200 31-Dec Interest Receivable 20 Interest Income 20 2012 1-May Cash 4060 Note Receivable 4000 Interest Receivable 20 Interest Income 40