Question
Adnan's Flower Shop provides floral arrangements for holidays and events.
Adflans sold Oxford Cdy Hall a holiday arrangement for 10,000 on account in
November Due to a government shutdown in December, Oxford only paid
$1,500 otthe amount due within the prescribed period. Both parties agreed to
satisfy the remaining balance with aten-month note, at 14% interest, all
payable at the end of the note.
Please record the appropriate joumnal entry establishing the note on Adran's
books.
Debit notes receivable 8500
Credit accounts receivable 8500
Adflans sold Oxford Cdy Hall a holiday arrangement for 10,000 on account in
November Due to a government shutdown in December, Oxford only paid
$1,500 otthe amount due within the prescribed period. Both parties agreed to
satisfy the remaining balance with aten-month note, at 14% interest, all
payable at the end of the note.
Please record the appropriate joumnal entry establishing the note on Adran's
books.
Debit notes receivable 8500
Credit accounts receivable 8500