Question

The Bentley Company has a December 31 yeacend and uses a periodic inventory system. The Company has completed the following transactions in 2019 and 2020 2019. October 15: sold goods to Tremblay receiving a 60-days, 6 percent note of $ 10 000 November 16: sold merchandise to E.Corbeil receiving a 60 days, 4 percent note of $15 000 December 14: Received amount due from Tremblay December 31: Recorded accrued interest on Corbeil's note . O 2020: January 15 : Corbeil's note is not honoured January 31 : Received amount due from Corbeil, including interest for the period of January 15 to January 31 at a rate of 4% REQUIRED Record the required entries in the general journal Include short explanation and show your calculations

Answer 1

Journal Entries in General Journal:

Date	General Journal	Debit($)	Credit($)
15-10-2019	6% Notes Receivable	10000
	Sales		10000
	(To Record sales for receiving 6% note)
16-11-2019	4% Notes Receivable	15000
	Sales		15000
	(To Record sales for receiving 4% note)
14-12-2019	Cash	10100
	6% Notes Receivable		10000
	Interest Revenue(10000*6%*60/360)		100
	(To record the amount of Notes receivable)
31-12-2019	Accrued Interest on Notes Receivable	75
	Interest Revenue(10000*4%*45/360)		75
	(To Record Interest Revenue)
31-01-2020	Cash	15084
	4% Notes Receivable		15000
	Interest Revenue(10000*4%*75/360)		84
	(To Record the amount received on Note including Interest)