On May 1, 2023, People's Networks sold computer networking supplies to Florida Autos for $46,100. The cost of the supplies is $20,745. Instead of paying immediately, Florida Autos signed a note receivable with 8% annual interest, payable in eight months with the principle amount. People's Networks has a year end of October 31. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. For transaction with two debits or credits, enter the debit accounts in alphabetical order followed by the credit accounts in alphabetical order. a) Record the journal entry when the sale is made; assume People's Networks uses the perpetual inventory system. Date May 1 May 1 Account Title and Explanation Notes Payable + Notes Receivable To record sales for notes receivable ♦ To record cost of goods sold ♦ Debit Credit

On May 1, 2023, People's Networks sold computer networking supplies to Florida Autos for $46,100. The cost of the supplies is $20,745. Instead of paying immediately, Florida Autos signed a note receivable with 8% annual interest, payable in eight months with the principle amount. People's Networks has a year end of October 31. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. For transaction with two debits or credits, enter the debit accounts in alphabetical order followed by the credit accounts in alphabetical order. a) Record the journal entry when the sale is made; assume People's Networks uses the perpetual inventory system. Date May 1 May 1 Account Title and Explanation Notes Payable + Notes Receivable To record sales for notes receivable ♦ To record cost of goods sold ♦ Debit Credit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6MC

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