Question

Marin Family Importers sold goods to Tung Decorators for $34,200 on November 1, 2020, accepting Tung's $34,200, 6-month, 5% note. Prepare Marin's November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest. (if no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

Date	Account	Debit	Credit
Nov 1	Notes Receivable	34,200
	Sales revenue		34,200
Dec 31	Investment receivable	285
	Interest revenue		285
	(34,200*5%*2/12)
May 1	Cash	35055
	Notes Receivable		34,200
	Interest revenue (34,200*5%*4/12)		570
	Interest receivable		285