12.4k views
4 votes
Sheffield Corp. sold $120000 of goods and accepted the customer's $120000 8%, 1-year note receivable in exchange. Assuming 8% approximates the market rate of return, what would be the debit in this journal entry to record the sale

1 Answer

5 votes

Answer:

The journal entry to record the sale :

Debit : Note Receivable $120000

Credit : Sales Revenue $120000

Step-by-step 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.

User ChanChow
by
8.2k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.