on february 1, 2021, sanger corp. lends cash and accepts a $3,000 note receivable that offers 18% interest and is due in six mon

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on february 1, 2021, sanger corp. lends cash and accepts a $3,000 note receivable that offers 18% interest and is due in six mon

ths. what would sanger record on august 1, 2021, when the borrower pays sanger the correct amount owed? (do not round intermediate calculations.)

Business

1 answer:

Rus_ich [418] · Answer 1 · 2024-08-07T07:09:55+03:00

The borrower pays the proper amount due to the seller Cash 3270

<h3>Briefing:-</h3>

1. Interest income of $3000 X (0.18) = 540

2. $540 over six or twelve months equals 270.

3. Journal Entry 3,000 Notes Receivable Interest Revenue 270 Cash 3270

<h3>Interest income is it income?</h3>

Interest income is the profit made from lending money to other organizations. The phrase is typically used in the income statement of the company to describe the interest received on cash held in savings accounts, certificates of deposits, or other investments.

<h3>What do journal entries entail?</h3>

A firm keeps a journal, which is a succinct record of all transactions; journal entries describe how transactions influence accounts and balances.

The information in journal entries serves as the foundation for all financial reporting, and there are several versions to suit different corporate requirements.

To Know more about seller Cash

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