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Bennett Enterprises issues a $580,000, 45-day, 6% note to Spectrum Industries for merchandise inventory.   Required: A. Journalize Bennett Enterprises’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Spectrum Industries’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.

Bennett Enterprises issues a $580,000, 45-day, 6% note to Spectrum Industries for merchandise inventory.   Required: A. Journalize Bennett Enterprises’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Spectrum Industries’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 4P
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Bennett Enterprises issues a $580,000, 45-day, 6% note to Spectrum Industries for merchandise inventory.
  Required:
A. Journalize Bennett Enterprises’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles):
1. the issuance of the note.
2. the payment of the note at maturity. Assume a 360-day year.
B. Journalize Spectrum Industries’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles):
1. the receipt of the note.
2. the receipt of the payment of the note at maturity. Assume a 360-day year.
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