Chapter 9, Problem 9.21EX

Entries for notes receivable

The series of five transactions recorded in the following T accounts were related to a sale to a customer on account and the receipt of the amount owed. Briefly describe each transaction.

Cash		Notes Receivable
(e) 76,500		(c) 75,000	(d) 75,000
Accounts Receivable		Cost of Goods Sold
(a) 75,000	(c) 75,000	(b) 45,000
(d) 75,400	(b) 75,400
Inventory		Interest Revenue
	(b) 45,000		(d) 400
			(e) 1,100
Sales
	(a) 75,000