AMCO Limited sells video recorders for cash and on instalment sales. Details of video recorders sold on instalment sales: Cost price R750 Cash selling price R1 000 Deposit, 20% Balance payable in 36 instalments of R35 each commencing 1 month after sale. The company utilizes an interest suspense account and earns interest on the sum of the digits method. On 1 March 2019, the company sold 5 video recorders on instalment sales. REQUIRED Journal entries (including cash transactions) to record all the transactions relating to those 5 video recorders for the year ended 31 December 2019. (All calculations to the nearest Rand).

AMCO Limited sells video recorders for cash and on instalment sales. Details of video recorders sold on instalment sales: Cost price R750 Cash selling price R1 000 Deposit, 20% Balance payable in 36 instalments of R35 each commencing 1 month after sale. The company utilizes an interest suspense account and earns interest on the sum of the digits method. On 1 March 2019, the company sold 5 video recorders on instalment sales. REQUIRED Journal entries (including cash transactions) to record all the transactions relating to those 5 video recorders for the year ended 31 December 2019. (All calculations to the nearest Rand).

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 15EA: Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise....

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