Ask Question
16 July, 02:28

Samberg Inc. had the following transactions. Oct. 1 - Sold $11,500 of merchandise on account, 1/10, n/30 to McCormick Industries. Nov. 1 - Received a $11,500, 90-day, 11% note from McCormick Industries to settle its $11,500 unpaid balance. Dec. 31 - Accrued interest on the note. (Round your answer to the nearest whole dollar amount.) Jan. 31 - Received the interest on the note's maturity date. Jan. 31 - Received the principal on the note's maturity date. (Round your answer to the nearest whole dollar amount.) Required: Prepare the required journal entries.

+5
Answers (1)
  1. 16 July, 04:43
    0
    Below are the Journal Entries for Samberg Inc.

    Explanation:

    Date Oct 1

    Debit: Accounts Receivables $11,500

    Credit: Sales Revenue $11,500

    To record merchandise sold on account 1/10, n/30.

    Date Nov 1

    Debit: Notes Receivables $11,500

    Credit: Accounts Receivables $11,500

    To record Notes Receivables.

    Date Dec 31

    Debit: Interest Receivables $316

    Credit: Interest Revenue $316

    To record Accrued Interest.

    Interest = Principal x Interest Rate x (No. of Days / Total Days in a Year)

    Interest = $11,500 x 11% x (90 / 360)

    Interest = $316

    Date Jan 31

    Debit: Cash $11,816

    Credit: Notes Receivables $11,500

    Interest Receivables $316

    To record Cash Received on maturity date with Interest.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Samberg Inc. had the following transactions. Oct. 1 - Sold $11,500 of merchandise on account, 1/10, n/30 to McCormick Industries. Nov. 1 - ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers