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    estudiant's Avatar
    estudiant Posts: 1, Reputation: 1
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    #1

    Sep 24, 2009, 07:55 PM
    Journal entries
    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's Avatar
    Addi38 Posts: 20, Reputation: 1
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    #2

    Sep 24, 2009, 08:48 PM

    Do you sell boats or is it part of your assets?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    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.
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