Business, 08.07.2021 21:30 heroxtree

On January 2, 2020, Pina Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note with face value of $9,800, with payment due in 12 months. The fair value of the goods at the date of sale is $8,700 (cost $5,220). Prepare the journal entry to record this transaction on January 2, 2020. How much total revenue should be recognized in 2017?

Answers: 3

Show answers

Answers

Answer from: joelwilliamjoel

a. See the journal entry below.

b. The amount of total revenue that should be recognized in 2020 is $9,800.

Explanation:

Note: There is slight error in the question as 2017 was erroneously mentioned. The year 2020 is therefore used throughout in answering this question.

a. Prepare the journal entry to record this transaction on January 2, 2020.

The following can first be calculated as follows:

Discount on Notes Receivable = Face value of the note - Fair value of the goods = $9,800 - $8,700 = $1,100

The journal entries will therefore look as follows:

Date Particulars Debit ($) Credit ($)

02 Jan 2020 Notes Receivable 9,800

Sales Revenue 8,700

Discount on Notes Receivable 1,100

(To record sales note receivable in exchange for sale.)

Cost of Goods Sold 5,220

Inventory 5,220

(To record cost of goods sold.)

b. How much total revenue should be recognized in 2020?

This cam be calculated as follows:

Sales revenue = Fair value of the goods = $8,700

Interest revenue = Face value of the note - Fair value of the goods = $9,800 - $8,700 = $1,100

Total Revenue = sales revenue + interest revenue = $8,700 + $1,100 = $9,800

Therefore, the amount of total revenue that should be recognized in 2020 is $9,800.

Answer from: Quest

answer; /// that is so (false);

Answer from: Quest

i would say their habit of breaking down.

Another question on Business

Business, 21.06.2019 15:40

Nikolas works in a shoe store as a salesperson. a teenage boy comes in looking for comfortable sports shoes because he is going on a hike. he tells nikolas he wants shoes that have velcro straps. nikolas shows him a wide variety of velcro-strapped shoes, but the customer rejects them because they don't feel comfortable. he asks for sports shoes with laces instead. nikolas once again shows him a wide variety. the boy is once again not satisfied and asks to see the velcro-strapped shoes again. nikolas is irritated but doesn't show his annoyance. what customer service skill is nikolas showing? nikolas is a. meekness b. patience c. persistence

Answers: 1

Answer

Business, 22.06.2019 05:10

Suppose that the free states of eldricia, a small nation, has consumption, investment, government purchases, imports, and exports as follows. consumption $140 investment $50 government purchases $45 imports $30 exports $15 calculate the free states of eldricia's gdp

Answers: 2

Answer

Business, 22.06.2019 15:10

Popeye produces 20 cans of spinach in 8 hours. wimpy produces 15 hamburgers in 10 hours. if each hamburger trades for 1.5 cans of spinach, then: a.wimpy’s production and productivity are greater than popeye’s. b.popeye’s production is greater than wimpy’s, but his productivity is less. c.wimpy’s production is greater than popeye’s, but his productivity is less. d.popeye’s production and productivity are greater than wimpy’s.

Answers: 3

Answer

Business, 22.06.2019 21:30

Which is the most compelling reason why mobile advertising is related to big data?

Answers: 1

Answer

You know the right answer?

On January 2, 2020, Pina Inc. sells goods to Geo Company in exchange for a zero-interest-bearing not...

Questions