Homework Answers
a)January 1 2020
Smith Inc Dr $132000
To Sales Cr $132000
b)December 31, 2020
1.Sales Return Dr $ 132000
To Smith Inc Cr $132000
2. Bank/Cash A/c Dr $ 9240
To Interest Received Cr $9240
c) Yes Answer will change
On December 31, 2020
1.
Bank/Cash A/c Dr $ 9240
To Interest Received Cr $9240
D)
January 1 2020
Smith Inc Dr $132000
To Sales Cr $132000
b)December 31, 2020
1.Sales Return Dr $ 132000
To Smith Inc Cr $132000
December 31, 2020
1.Sales Return Dr $ 125000
To Smith Inc Cr $125000
2. Smith Inc Dr $ 9240
To Interest Received Cr $9240
3. Bank/Cash Dr $ 2240
To Smith Inc Cr 2240
Assuming that market value in 31 December 2020 is $125000/-
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