136k views
1 vote
On 20/07/2019, "ABC" Company sold goods to customer "X" with a total value of $120.000 The customer pad

40% cash, and signed a 80 days, 10% note for the reaming balance.
Instructions:
Based on the above given information answer the following questions, assuming the company has a fiscal year
ending 31/8:
1)
What is the amount of sales revenue that "ABC" Company must record on August 10 2019
2) on 31/8/2020 « ABC » company must a note
receivable with an amount on statement of
financial position?
Help me with these two questions please

On 20/07/2019, "ABC" Company sold goods to customer "X" with a-example-1

1 Answer

5 votes

Answer:

1) total sales revenue = $120,000

this amount holds regardless of how much money was collected in cash or if an account/note receivable was recorded

2) the company must recognize interest revenue:

principal = $72,000

interest revenue = $72,000 x 10% x 40/360 days = $800

Dr Interest receivable 8000

Cr Interest revenue 800

User ShoeMaker
by
8.6k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.