Sheffield Corp. sold $120000 of goods and accepted the customer's $120000 8%, 1-year note receivable in exchange. Assuming 8% ap

Question

Natalka [10]

2 years ago

9

Sheffield Corp. sold $120000 of goods and accepted the customer's $120000 8%, 1-year note receivable in exchange. Assuming 8% ap

proximates the market rate of return, what would be the debit in this journal entry to record the sale

Business

1 answer:

svetlana [45] · Answer 1 · 2022-08-31T05:15:11+03:00

Answer:

The journal entry to record the sale :

Debit : Note Receivable $120000

Credit : Sales Revenue $120000

Explanation:

The journal entry to record the sale includes a Debit entry of a Note Receivable at the amount owed by the customer since there was no immediate payment of cash and a Credit entry of Sales Revenue to recognize Income earned.