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?
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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?
Do you sell boats or is it part of your assets?
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.
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