Need help with journal entries for sale of inventory

L_Breezy · #1 Aug 13, 2005, 02:04 AM

Hey, here's the info.

Dec. 1/04: Sold inventory for $60000. $10000 cash down payment, 20000 payable Dec. 1/05, and 30000 payable Dec. 1/06. The cost of inventory was 40000.

Customer signed an installment note which called for interest at 12% on unpaid balance on Dec. 31 '04 and '05 and Dec. 1/06.

Need help with the journal entries. Do i make two Note Receivables for 20000 and 30000 or do i lump into one entry for notes receivable for 50000? and how do i account for the interest at year end(which is at the end of the month)?
Thanks for any help in advance.



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