Question

Nash Family Importers sold goods to Tung Decorators for $37,200 on November 1, 2020, accepting Tung’s $37,200, 6-month, 6% note.

Prepare Nash’s November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date                                                          11/1/2012/31/205/1/21	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                          11/1/2012/31/205/1/21	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                          11/1/2012/31/205/1/21	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount

Answer 1

Solution:

Journal Entries - Nash Family Importers
Date	Particulars	Debit	Credit
1-Nov	Notes receivables Dr	$37,200.00
	To Sales revenue		$37,200.00
	(To record sales on receipt of note)
31-Dec	Interest receivables Dr ($37,200*6%*2/12)	$372.00
	To Interest Revenue		$372.00
	(To record interest revenue)
1-May-20	Cash Dr	$38,316.00
	To Note receivables		$37,200.00
	To Interest receivables		$372.00
	To Interest Revenue ($37,200*6%*4/12)		$744.00
	(To record collection of note at maturity)