On June 1, 2019, Franklin Company purchased inventory costing $90,000 by signing an 8%, nine-month, short-term note

Question:

On June 1, 2019, Franklin Company purchased inventory costing $90,000 by signing an 8%, nine-month, short-term note payable. Franklin will pay the entire note (principal and interest) on the note’s maturity date. Journalize the company’s (a) purchase of inventory and (b) accrual of interest on the note payable on December 31, 2019.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...

Fantastic news! We've Found the answer you've been seeking!