Builder's Supply issues a 90-day note for $200,000 to Gem Lighting Co. for merchandise inventory. Gem Lighting

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Builder's Supply issues a 90-day note for $200,000 to Gem Lighting Co. for merchandise inventory. Gem Lighting Co. discounts the note at 8%.

a. Journalize Builder's Supply's entries to record:

1. The issuance of the note.

2. The payment of the note at maturity.

b. Journalize Gem Lighting Co.'s entries to record:

1. The receipt of the note.

2. The receipt of the payment of the note at maturity.

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Accounting

ISBN: 978-0324188004

21st Edition

Authors: Carl s. warren, James m. reeve, Philip e. fess

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Question Posted: Nov 08, 2012 04:33 AM

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Builder's Supply issues a 90-day note for $200,000 to Gem Lighting Co. for merchandise inventory. Gem Lighting

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a 1 Merchandise Inventory 196000 Interest Expense 4000 1 Notes ...View the full answer

Accounting

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