Question

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:

Answer 1

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

Note Receivable ; Jax Recording Studio $8,200 (debit)

Sales Revenue $8,200 (credit)

Step-by-step 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.