Question

You perform a business service for which you charge $575. You receive $200 in cash and a promissory note for the balance payable in 60 days. What steps will you use to show this transaction on your balance sheet.?

Answer 1

We are asked to show the transaction in the balance sheet of a customer who made a promissory note that he will pay the remaining in 60 days. The given values and details are shown below:
Charge = $575
Cash = $200
Balance = $375

The transaction is Receivables ($200, $375, $575).