Answered: Barkers Baked Goods purchases dog…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 10EA: Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 6,000 treats...

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Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 22,000 treats at $1 per treat. Terms of the purchase are 2/10, n/30. Barkers pays half the amount due in cash on February 28 but cannot pay the remaining balance due in four days. The supplier renegotiates the terms on March 4 and allows Barkers to convert its purchase payment into a short-term note, with an annual interest rate of 6 percent, payable in 9 months.

A. Compute the interest expense due when Barkers honors the note.

$fill in the blank 0b17d404a07307c_1

B. Show the entry to record the payment of the short-term note on December 4. If an amount box does not require an entry, leave it blank.

Dec. 4	fill in the blank e53baff85fb6013_2	fill in the blank e53baff85fb6013_3
	fill in the blank e53baff85fb6013_5	fill in the blank e53baff85fb6013_6
	fill in the blank e53baff85fb6013_8	fill in the blank e53baff85fb6013_9

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