Record journal entries for the following transactions of Telesco Enterprises. Jan. 1, 2018 Issued a $330,700 note to customer Abe Willis as terms of a merchandise sale. The merchandise's cost to Telesco is $126,900. Note contract terms included a 36-month maturity date, and a 4% annual interest rate. Telesco records interest accumulated for 2018. Dec. 31, 2018 Dec. 31, 2019 Telesco records interest accumulated for 2019. Dec. 31, 2020 Abe Willis honors the note and pays in full with cash. If an amount box does not require an entry, leave it blank. Jan. 1, 2018 Notes Receivable: Willis Jan. 1, 2018 Sales Revenue To record sale in exchange for Notes Receivable: Willis, 36-month maturity, 4% interest rate Cost of Goods Sold Merchandise Inventory To record the cost of sale Dec. 31, 2018 interest Receivable: Willis interest Revenue To record interest accumulated in 2018 Dec 31, 2019 interest Receivable: Willis interest Revenue ✓ To record interest accumulated in 2019 Dec 31, 2020 Cash Notes Receivable: Willis interest Receivable: Wilis interest Revenue To record collection of principal and accumulated interest 330,700✔ 126,900 13,228 13,228 ✓ ✓ 330,700 ✓ 126,900 ✔ 13,228 13,228

Record journal entries for the following transactions of Telesco Enterprises. Jan. 1, 2018 Issued a $330,700 note to customer Abe Willis as terms of a merchandise sale. The merchandise's cost to Telesco is $126,900. Note contract terms included a 36-month maturity date, and a 4% annual interest rate. Telesco records interest accumulated for 2018. Dec. 31, 2018 Dec. 31, 2019 Telesco records interest accumulated for 2019. Dec. 31, 2020 Abe Willis honors the note and pays in full with cash. If an amount box does not require an entry, leave it blank. Jan. 1, 2018 Notes Receivable: Willis Jan. 1, 2018 Sales Revenue To record sale in exchange for Notes Receivable: Willis, 36-month maturity, 4% interest rate Cost of Goods Sold Merchandise Inventory To record the cost of sale Dec. 31, 2018 interest Receivable: Willis interest Revenue To record interest accumulated in 2018 Dec 31, 2019 interest Receivable: Willis interest Revenue ✓ To record interest accumulated in 2019 Dec 31, 2020 Cash Notes Receivable: Willis interest Receivable: Wilis interest Revenue To record collection of principal and accumulated interest 330,700✔ 126,900 13,228 13,228 ✓ ✓ 330,700 ✓ 126,900 ✔ 13,228 13,228

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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