Question

Prepare journal entries to record the following transactions entered into by the Valente Company: 2016 June 1 Received a $10,000, 12%, 1-year note from Andrea Foley as full payment on her account. Nov. 1 Sold merchandise on account to Patton, Inc. for $12,000, terms 2/10, n/30. Nov. 5 Patton, Inc. returned merchandise worth $500. Nov. 9 Received payment in full from Patton, Inc. Dec. 31 Accrued interest on Foley's note. 2017 June 1 Andrea Foley honored her promissory note by sending the face amount plus interest. No interest has been accrued in 2017.

Answer 1

Date	journal	debit	credit
June 1	notes receivable	$10000
	To cash (any other account due)		$10000
Nov 1	account receivable	$12000
	To sales		$12000
Nov 5	account receivable	$500
	To sales		$500
Nov 9	cash	$11500
	To account receivable		$11500
Dec 31	accrued interest	$600
	To interest		$600
2017 june 1	cash	$11200
	To accrued interest		$600
	To interest		$600
	To notes		$10000

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