Question

Giorgio Italian Market bought $8,800 worth of merchandise from Food Suppliers and signed a 90-day, 6% promissory note for the $8,800. Food Supplier's journal entry to record the collection on the maturity date is?

Answer 1

Answer:

Debit Cash $8932 ;

Credit Interest Revenue $60;

Credit Notes Receivable $8,932

Step-by-step explanation:

Every entry has various columns which include dates, appropriate particulars of account name, debit amount column, credit amount column.

Particular                                          Debit($)            Credit($)

Cash A/c                                           8,932

Notes Receivable                                                   8,800

Interest Income                                                       132

(Interest=8800*6/100*3/12=132)