Question

Problem 5-86A (Algorithmic) Accounting for Notes Receivable Yarnell Electronics sells computer systems to small businesses. Yamell engaged in the following activities involving notes receivable a. On November 1, 2019, Yamell sold a $5,000 system to Ross Company. Ross gave Yamella 6-month, 11% note as payment b. On December 1, 2019, Yarnell sold an $8,500 system to Searfoss Inc. Starfoss gave Yarella 9- month, 10% note as payment c. On May 1, 2020, Ross paid the amount due on its note. d. On September 1, 2020, Searfoss paid the amount due on its note Required: Prepare the necessary Journal and adjusting entries for Yarnell Electronies to record these transactions. For a compound transaction, if an amount box does not require an entry, leavet blank. It required, round your answers to two decimal places Note from Ross Company 2019 Nov. 1 - Record sale 2019 Dec. 31 Record accrued interest Income 2020 May 1 Previous

Answer 1

Dr. Cri hoss company Dute Particulars 5000 2019 Nov. od 11% Note Receivable 5000 To Sales sule recorded) (Being 2019 Dec 31 9.67 Interest Accrned 91.67 To Interest income I being interest accrned for 2 month) 85000x 11% X 2 91.6 = 72 cs Scanned with CamScanner

2020 May all Bank Dri 5275 To 11% Notes Receivable 5000 To Interest accrued 91.67 To Interest income 183. 33 (Bling Gollection recorded) X From Sear foss Inc. X 2019 Dec oll 8500 107. Notes Receivable To sales (Record sules) s ses 2014 Dec 31 70.83 70.83 Interest Accrued To Interest Income ( Being interest accrued recorded) 8 509 X10% XV2 70.83 2020 Sep ol 9137.50 Bank Dr. To loy Notes Receivable 8500 To Interest accrned 70.83 To Interest income 5.66.67 (Being Gllection recorded) cs Scanned with CamScanner