On January 1, 2017, Oldham Company sold goods to Windall Company in exchange for a 3-year, non-interest-bearing
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Question:
On January 1, 2017, Oldham Company sold goods to Windall Company in exchange for a 3-year, non-interest-bearing note with a face value of $10,000. If Oldham entered into a separate financing transaction with Windall, an appropriate interest rate would be 8%. Which of the following statements is true about the journal entry that records the transaction when Oldham delivers the goods to Windall on January 1, 2017?
Credit Discount on Note Receivable $2,400
Credit Sales Revenue $7,600
Credit Interest Revenue $2,400
Debit Note Receivable for $10,000
Related Book For
Fundamental Accounting Principles Volume 1
ISBN: 9781259259807
15th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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