Question: Please Help: Accounting homework. Notes Receivable : On Jan. 1, 2020, New York Chevrolet sold a 1-ton 4x4 Truck to Northwest Energy in exchange for

Please Help: Accounting homework.

Notes Receivable:

On Jan. 1, 2020, New York Chevrolet sold a 1-ton 4x4 Truck to Northwest Energy in exchange for a 5-year zero-interest-bearing note with a face amount of $135,000, due Jan. 1, 2025.

  • New York Chevrolet's credit rating makes it eligible to borrow money at 3% interest.
  • Northwest Energys credit rating makes it eligible to borrow money at 5% interest compounded annually from local banks.
  • New York Chevrolet's inventory records show the trucks original cost at $80,000

Instructions:

Record all business transactions for 2020 related to the Sale and the in New York Chevrolet's accounting records, assuming Chevrolet has a December 31, 2020 year end.

Accounts

Debit

Credit

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