Jax Recording Studio purchased $8,200 in electronic components from Music World. Jax signed a 90-day, 10% promissory note for $8

Question

frozen [14]

3 years ago

13

Jax Recording Studio purchased $8,200 in electronic components from Music World. Jax signed a 90-day, 10% promissory note for $8

,200. Music World's journal entry to record the sales transaction is:

Business

1 answer:

Hunter-Best [27] · Answer 1 · 2022-04-15T10:02:53+03:00

Answer:

World's journal entry to record the sales transaction is:

<em>Note Receivable ; Jax Recording Studio $8,200 (debit)</em>

<em>Sales Revenue $8,200 (credit)</em>

Explanation:

Music World is the seller and must recognize Revenue following the sale.The Revenue is initially recognized at the value of sale of $8,200. Music World must also recognize an Asset on the promissory note signed to the value of $8,200.