Question

The following transactions occurred in June through August 2020.

June 1		After much thought, Natalie sells a mixer to Curtis on credit, terms n/30, for $1,150 (cost of mixer $620).
30		Curtis calls Natalie. He is unable to pay the amount outstanding for another month, so he signs a one-month, 8.35% note receivable.
July 31		Curtis calls Natalie. He indicates that he is unable to pay today but hopes to have a check for her at the end of the week. Natalie prepares the journal entry to record the dishonor of the note. She assumes she will be paid within a week.
Aug. 7		Natalie receives a check from Curtis in payment of his balance owed.

(b)

Prepare journal entries for the transactions that occurred in June, July, and August. (The company uses a perpetual inventory system). Round to nearest dollar. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 12. Record entries in the order displayed in the problem statement.)

Date	Account Titles and Explanation	Debit	Credit
June 1June 30July 31Aug. 7
	(To record sales revenue)
June 1June 30July 31Aug. 7
	(To record cost of goods sold)
June 1June 30July 31Aug. 7
June 1June 30July 31Aug. 7
June 1June 30July 31Aug. 7

Answer 1

Date	Account Titles and Explanation	Debit	Credit
June 1	Accounts Receivable	1150
	Sales revenue		1150
	(To record sales revenue)
June 1	Cost of goods sold	620
	Inventory		620
	(To record cost of goods sold)
June 30	Notes Receivable	1150
	Accounts Receivable		1150
July 31	Accounts Receivable	1158
	Interest revenue		8	=1150*8.35%*1/12
	Notes Receivable		1150
Aug. 7	Cash	1158
	Accounts Receivable		1158