Furniture Co sells merchandise for $88,000 on January 1, 2021. The customer paid $20,000 cash and...

 

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Furniture Co sells merchandise for $88,000 on January 1, 2021. The customer paid $20,000 cash and issued a note for the remainder. The principal will be due in 3 year and 4% interest is due every December 31st. The customer's borrowing rate is 6%. Required: a) Assuming Furniture Co is a public corporation prepare all journal entries for 2021 and 2022. b) Assuming Furniture Co is a private corporation, what would be the recurring journal entry on December 31st? Furniture Co sells merchandise for $88,000 on January 1, 2021. The customer paid $20,000 cash and issued a note for the remainder. The principal will be due in 3 year and 4% interest is due every December 31st. The customer's borrowing rate is 6%. Required: a) Assuming Furniture Co is a public corporation prepare all journal entries for 2021 and 2022. b) Assuming Furniture Co is a private corporation, what would be the recurring journal entry on December 31st?

Answer rating: 100% (QA)

a Assuming Furniture Co is a public corporation 2021 Journal Entries January 1 2021 Debit Accounts R... View the full answer