This class has 60 students. Each student is going to order a Tesla Model. For simplicity, we will assume the following:

The price of each car is $60,000 (before sales tax)

The deposit required while ordering is $10,000.

Sales tax are 6.00% (assessed when the car is delivered)

Final payment is due when car is delivered.

The following is a summary of the transactions that occurred:

April 7 - all 60 students made their orders and paid the $10,000 required deposit.

April 14 - 40 cars are delivered and the students pay the remaining balance.

April 21 - the remaining 20 cars are delivered. The students only pay the sales tax. Tesla finances the remaining balance for each student with a 180-day 5.00% short-term note payable.

October 18 - all 20 students pay the note payable to Tesla and the accrued interest.

REQUIRED: Record proper journal entries for TESLA for the above four transactions.

Answer rating: 100% (QA)

To record the journal entries for Tesla for the given transactions we will use the following account... View the full answer