# Use information from EA10. Compute the interest expense due when Barkers honors the note. Show the journal entry to recognize payment of the short-term note on December 4.

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

#### Solutions

Chapter
Section
FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 12, Problem 11EA
Textbook Problem
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## Use information from EA10. Compute the interest expense due when Barkers honors the note. Show the journal entry to recognize payment of the short-term note on December 4.

To determine

Concept introduction:

Purchase terms may contain the cash discount for early payment of the credit purchase. For example, a term 2/10, n 30 means that there shall be a 2% discount allowed if the payment is made within 10 days and the total credit period allowed is 30 days.

Journal Entry: Injournal entry a company records all the business transactions which are in monetary form. Company records the transaction on debit and credit in journal entry which are always equal.

To prepare:

The journal entries for the given transaction.

### Explanation of Solution

The journal entries for the given transaction are explained as follows:

 Journal entries S.No. Date Account Title Debit Credit A Feb. 2 Purchases $6,000 Accounts Payable$ 6,000 (Being purchase made on account) (6000 units @ $1) B Feb. 28 Accounts Payable$ 3,000 Cash \$ 3,000 (Being payment made for the purchases made on account) (6000/2=3000) C Mar...

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