Question

Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,800. Music World's journal entry to record the sales transaction is:

Answer 1

Answer: Debit Notes Receivable 7,800

Sales(to record sales) 7,800

Step-by-step explanation:

When a customer signs a promissory note in exchange for commodity then the entry to record sales is recorded by debiting notes receivable.

here, sales = $7,800 = Debit Notes Receivable

The entry to record the sales transaction would be

Debit Notes Receivable 7,800

Sales(to record sales) 7,800