All American Storage Corporation sold merchandise with credit terms of 2/10, n/30, for $100,000 to a customer on January 1, 2019. Nine months later, on October 1, 2019 the company accepted a 12%, 6-month note receivable in settlement of the account. The customer paid the maturity value of the note on the due date.Prepare the following journal entries:
A) Record the sale of merchandise on January 1, 2019. B)Record the receipt of the note receivable on October 1, 2019. C) Record the adjusting entry to accrue interest on December 31, 2019. D)What is the due date of the note? E) Record the collection of the note on the due date.
What will be an ideal response?
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What will be an ideal response?
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