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Giorgio Italian Market bought $8,200 worth of merchandise from Food Suppliers and signed a 90-day, 6%...

Giorgio Italian Market bought $8,200 worth of merchandise from Food Suppliers and signed a 90-day, 6% promissory note for the $8,200. Food Supplier's journal entry to record the collection on the maturity date is: (Use 360 days a year.)

  • Debit Cash $8,200; debit Interest Receivable $123; credit Sales $8,323

  • Debit Cash $8,323; credit Interest Revenue $123; credit Notes Receivable $8,200

  • Debit Cash $8,323; credit Notes Receivable $8,323

  • Debit Notes Receivable $8,200; credit Cash $8,200

  • Debit Notes Receivable $8,323; credit Sales $8,323

Solutions

Expert Solution

Answer : Debit Cash $8,323; credit Interest Revenue $ 123 Credit notes receivables $ 8,200

Journal Entry

Debit Credit
Cash 8,323
Interest Revenue ( 8200*6%*90/360) 123
Notes receivables 8,200

ekkarill92 answered 2 years ago
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