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Recording Notes Receivable: Issuance, Payment, and Default Marydale Products permits its customers to defer payment by...

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Accounting

Recording Notes Receivable: Issuance, Payment, and DefaultMarydale Products permits its customers to defer payment by givingpersonal notes instead of cash. All the notes bear interest andrequire the customer to pay the entire note in a single payment 6months after issuance. Consider the following transactions, whichdescribe Marydale's experience with two such notes: On October 31,2019 Marydale accepts a 6-month, 12% note from Customer A in lieuof a $3,600 cash payment for merchandise delivered on that day. OnFebruary 28, 2020 Marydale accepts a 6-month, $2,100, 12% note fromCustomer B in lieu of a $2,100 cash payment for merchandisedelivered on that day. On April 30, 2020 Customer A pays the entirenote plus interest in cash. On August 31, 2020 Customer B pays theentire note plus interest in cash. Required: Prepare the necessaryjournal and adjusting entries required to record Transactions athrough d in Marydale's records. For a compound transaction, if anamount box does not require an entry, leave it blank. a. Oct. 31,2019 Record sale Dec. 31, 2019 Record accrued interest income b.Feb. 28, 2020 Record sale c. Apr. 30, 2020 Record collection ofnote receivable d. Aug. 31, 2020 Record collection of notereceivable

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Marydale Products Journal entries and adjusting entries Date Account Titles and Explanation Ref Post Debit Credit a 31Oct19 Notes Receivable 3600 Sales 3600 To    See Answer
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