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estudiant
Sep 24, 2009, 07:55 PM
If I sold a boat for $10000 on account to be paid within 60 days, but the total amount of the transaction was $15000, would I debit A/R for 15k and credit sales revenue for 10k and interest receivable for 5k?

Addi38
Sep 24, 2009, 08:48 PM
Do you sell boats or is it part of your assets?

morgaine300
Sep 24, 2009, 10:35 PM
And what does "amount of transaction" mean? If you sold it for $10,000, isn't that the amount of the transaction? And where is interest coming from? There's nothing to imply interest. I don't get it.

PLEASE state the problem EXACTLY as it is given to you and don't try to paraphrase it.