On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $519,000 by Elmira on December 31, 2023. The effective interest rate is 6%. ( EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of 5) (Use appropriate factor(s) from the tables provided.) Required: 1. How much sales revenue would Wright recognize on January 1, 2021, for this transaction? 2. Prepare journal entries to record the sale of merchandise on January 1, 2021 (omit any entry that might be required for the cost of the goods sold), the December 31, 2021, interest accrual, the December 31, 2022, interest accrual, and receipt of payment of the note on December 31, 2023 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below.
On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $519,000 by Elmira on December 31, 2023. The effective interest rate is 6%. ( EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of 5) (Use appropriate factor(s) from the tables provided.) Required: 1. How much sales revenue would Wright recognize on January 1, 2021, for this transaction? 2. Prepare journal entries to record the sale of merchandise on January 1, 2021 (omit any entry that might be required for the cost of the goods sold), the December 31, 2021, interest accrual, the December 31, 2022, interest accrual, and receipt of payment of the note on December 31, 2023 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please help me
Transcribed Image Text:On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a
note requiring payment of $519,000 by Elmira on December 31, 2023. The effective interest rate is 6% (EV of $1. PV of $1. FVA of $1.
PVA of $1. EVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.)
Required:
1. How much sales revenue would Wright recognize on January 1, 2021, for this transaction?
2. Prepare journal entries to record the sale of merchandise on January 1, 2021 (omit any entry that might be required for the cost of
the goods sold), the December 31, 2021, interest accrual, the December 31, 2022, interest accrual, and receipt of payment of the note
on December 31, 2023
Complete this question by entering your answers in the tabs below.
Required
No
Prepare journal entries to record the sale of merchandise on January 1, 2021 (omit any entry that might be required for the
cost of the goods sold), the December 31, 2021, interest accrual, the December 31, 2022, interest accrual, and receipt of
payment of the note on December 31, 2023. (If no entry is required for a transaction/event, select "No journal entry
required in the first account field. Do not round intermediate calculations and round your final answers to nearest whole
number.)
1
2
Required 2
3
Answer is complete but not entirely correct.
Date
January 01, 2021 Notes receivable
General Journal
Discount on notes receivable
Sales revenue
December 31, 202 Discount on notes receivable
Interest revenue
December 31, 202 Discount on notes receivable
Interest revenue
***
00
00
Debit
520,000
22.805
23,946
Credit
71,892
456,108
22.805
23.946
Show less A
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