Merchandise was purchased on account; a two-year, $16,000, 1% note dated 1 February 2015 was given...

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Merchandise was purchased on account; a two-year, $16,000, 1% note dated 1 February 2015 was given to the supplier. Interest is due annually on 1 February. The going interest rate for this term and risk was 7%. Use the gross method to record the note payable. 14,264 Inventory/Merchandise Discount on notes payable 1736 Notes Payable 16000 Merchandise was purchased on account; a two-year, $16,000, 1% note dated 1 February 2015 was given to the supplier. Interest is due annually on 1 February. The going interest rate for this term and risk was 7%. Use the gross method to record the note payable. 14,264 Inventory/Merchandise Discount on notes payable 1736 Notes Payable 16000

Answer rating: 100% (QA)

To record the note payable for the merchandise purchased on account we will use ... View the full answer