Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2024, wright transport sold four sch

On January 1, 2024, Wright Transport sold four school buses to the Elmira School District....

80.2K

Verified Solution

Question

Accounting

On January 1, 2024, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $533,000 by Elmira on December 31, 2026. The effective interest rate is 9%.

Note: Use appropriate factor(s) from the tables provided. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Required:

  1. How much sales revenue would Wright recognize on January 1, 2024, for this transaction?
  2. Prepare journal entries to record the sale of merchandise on January 1, 2024 (omit any entry that might be required for the cost of the goods sold), the December 31, 2024, interest accrual, the December 31, 2025, interest accrual, and receipt of payment of the note on December 31, 2026.
Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Evaluate the line integral, where C is the given curve, where C consists of line segments...

Advance Math
Q

Which of the following is a sever condition associated with a cumulative loss of water...

Biology
Q

H Identify the similarity ratio between Quads QRST and Quad PJKO Side lengths from Quad...

Geometry
Q

The amount of simple interest earned, n, varies jointly with the rate of interest, r,...

Basic Math
Q

A carousel is being designed for the Spring Festival. The horses will be mounted to...

Basic Math
Q

(a) Write the equation in slope-intercept form, and determine the slope and y-intercept.(b) Graph the...

Basic Math
Q

Water is flowing downhill at 35 0m s through a pipe that is at an...

Algebra
Q

Presented below is a partial stockholders' equity section of Ruple Corporation's balance sheet on December...

Accounting
Q

The application of accounting knowledge in legal or other cases to help resolve different types...

Accounting
Q

Martin Company uses the absorption costing approach to cost-plus pricing. It is considering the introduction...

Accounting
Q

Required information (The following information applies to the questions displayed below.) Sun Corporation received a...

Accounting
Q

Beacon Company is considering automating its production facility. The initial investment in automation would be...

Accounting