Question

Help please!

Brief Exercise 18-9 On January 2, 2017, Crane Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note with face value of $10,900, with payment due in 12 months. The fair value of the goods at the date of sale is s9,600 (cost $5,760) Prepare the journal entry to record this transaction on January 2, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 2, 2017 (To record sales) To record cost of goods sold) How much total revenue should be recognized in 2017? Total revenue

Answer 1

Solution:

Journal Entries - Crane Inc.
Date	Particulars	Debit	Credit
2-Jan-17	Note Receivables Dr	$10,900.00
	To Sales Revenue		$9,600.00
	To Discount on note receivables		$1,300.00
	(Being sales recorded by receiving note)
2-Jan-17	Cost of goods sold Dr	$5,760.00
	To Inventories		$5,760.00
	(To record COGS for goods sold)

Reveue should be recognized in 2017 = $9,600