Question
In: Accounting
The company sold merchandise to a customer on December 1, 2019, for $100,000. The customer paid...
The company sold merchandise to a customer on December 1, 2019, for $100,000. The customer paid with a promissory note that has a term of 6 months and an annual interest rate of 9%. The company’s accounting period ends on December 31.
What amount should the company recognize as interest revenue on December 31, 2019?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for...
On November 1, 2017, Bernard Company (a U.S.-based company) sold
merchandise to a foreign customer for 120,000 FCUs with payment to
be received on April 30, 2018. At the date of sale, Bernard entered
into a six-month forward contract to sell 120,000 FCUs. The company
properly designates the forward contract as a cash flow hedge of a
foreign currency receivable. The following exchange rates
apply:
Date
Spot Rate
Forward Rate
(to April 30, 2018)
November 1,
2017
$
0.23
$...
On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for...
On November 1, 2017, Bernard Company (a U.S.-based company) sold
merchandise to a foreign customer for 150,000 FCUs with payment to
be received on April 30, 2018. At the date of sale, Bernard entered
into a six-month forward contract to sell 150,000 FCUs. The company
properly designates the forward contract as a cash flow hedge of a
foreign currency receivable. The following exchange rates
apply:
Date
Spot Rate
Forward Rate
(to April 30, 2018)
November 1, 2017
$
0.26
$...
On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for...
On November 1, 2017, Bernard Company (a U.S.-based company) sold
merchandise to a foreign customer for 250,000 FCUs with payment to
be received on April 30, 2018. At the date of sale, Bernard entered
into a six-month forward contract to sell 250,000 FCUs. The company
properly designates the forward contract as a cash flow hedge of a
foreign currency receivable. The following exchange rates apply:
Date Spot Rate Forward Rate (to April 30, 2018) November 1, 2017 $
0.36 $...
On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for...
On November 1, 2017, Bernard Company (a U.S.-based company) sold
merchandise to a foreign customer for 190,000 FCUs with payment to
be received on April 30, 2018. At the date of sale, Bernard entered
into a six-month forward contract to sell 190,000 FCUs. The company
properly designates the forward contract as a cash flow hedge of a
foreign currency receivable. The following exchange rates
apply:
Date
Spot Rate
Forward Rate
(to April 30, 2018)
November 1, 2017
$
0.30
$...
On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for...
On November 1, 2017, Bernard Company (a U.S.-based company) sold
merchandise to a foreign customer for 170,000 FCUs with payment to
be received on April 30, 2018. At the date of sale, Bernard entered
into a six-month forward contract to sell 170,000 FCUs. The company
properly designates the forward contract as a cash flow hedge of a
foreign currency receivable. The following exchange rates
apply:
Date
Spot Rate
Forward Rate
(to April 30, 2018)
November 1, 2017
$
0.28
$...
On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for...
On November 1, 2017, Bernard Company (a U.S.-based company) sold
merchandise to a foreign customer for 120,000 FCUs with payment to
be received on April 30, 2018. At the date of sale, Bernard entered
into a six-month forward contract to sell 120,000 FCUs. The company
properly designates the forward contract as a cash flow hedge of a
foreign currency receivable. The following exchange rates
apply:
Date
Spot Rate
Forward Rate
(to April 30, 2018)
November 1,
2017
$
0.23
$...
On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for...
On November 1, 2017, Bernard Company (a U.S.-based company) sold
merchandise to a foreign customer for 230,000 FCUs with payment to
be received on April 30, 2018. At the date of sale, Bernard entered
into a six-month forward contract to sell 230,000 FCUs. The company
properly designates the forward contract as a cash flow hedge of a
foreign currency receivable. The following exchange rates
apply:
Date
Spot Rate
Forward Rate
(to April 30, 2018)
November 1, 2017
$
0.34
$...
During the year ended December 31, 2019, Parent Company (the parent) sold merchandise to Subsidiary Corporation...
During the year ended December 31, 2019, Parent Company (the
parent) sold merchandise to Subsidiary Corporation (a 90%-owned
subsidiary) for a price of $32,340, at a markup of 32% of cost.
Subsidiary sold merchandise acquired from Parent to outsider
customers for $38,500 during 2019. Included in Subsidiary’s January
1, 2019, inventories were goods acquired from Parent at a billed
price of $3,036 and included in Subsidiary’s December 31, 2019,
inventories were goods acquired from Parent at a billed price of...
During the year ended December 31, 2019, Parent Company (the parent) sold merchandise to Subsidiary Corporation...
During the year ended December 31, 2019, Parent Company (the
parent) sold merchandise to Subsidiary Corporation (a 90%-owned
subsidiary) for a price of $32,340, at a markup of 32% of cost.
Subsidiary sold merchandise acquired from Parent to outsider
customers for $38,500 during 2019. Included in Subsidiary’s January
1, 2019, inventories were goods acquired from Parent at a billed
price of $3,036 and included in Subsidiary’s December 31, 2019,
inventories were goods acquired from Parent at a billed price of...
On December 1, Macy Company sold merchandise with a selling price of $9,000 on account to...
On December 1, Macy Company sold merchandise with a selling
price of $9,000 on account to Mrs. Jorgensen, with terms 4/10,
n/30. On December 3, Mrs. Jorgensen returned merchandise with a
selling price of $700. Mrs. Jorgensen paid the amount due on
December 9. What journal entry did Macy Company prepare on December
9 assuming the gross method is used?
A) Debit Cash for $7,968 and credit Accounts Receivable for
$7,968.
B) Debit Sales Revenue for $7,968, debit Sales Discounts...
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