Question

Giorgio Italian Market bought $11,100 worth of merchandise from Food Suppliers and signed a 120-day, 9% promissory note for the $11,100. Food Suppliers journal entry to record the sales transaction is:

Answer 1

Explanation:

The journal entry is as follows

Notes receivable A/c Dr $11,100

         To Sales A/c $11,100

(Being the sales is recorded)

Since the merchandise transaction is done through note receivable so we debited the note receivable account and the transaction is of sale type so the sales account is credited. Both the transactions are recorded at $11,100