Supersonic Inc. buys and sells washers and dryers in the GTA. Product Selling Price (standalone) Cost Washing
Question:
Supersonic Inc. buys and sells washers and dryers in the GTA.
Product Selling Price (standalone) Cost
Washing machine $1,302 $1,504
Installation 155 - Maintenance 93 -
• On May 1, 2021, Mohammad orders a washing machine for a total price of $1460, installation and a one-year maintenance plan.
• On June 1st, Supersonic delivers the washing machine and invoices the customer for the washing machine. Terms are 30 days.
• On June 2, the customer pays for the one-year maintenance plan.
• On June 4, Supersonic installed the machine.
• Since the customer has not paid the washing machine or plumbing bill on July 1, it converts the accounts to an annual interest-bearing note with an annual interest rate of 4%.
Prepare required journal entries for 2021, including year-end correction entries
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett