Colbert sells 3-D printer systems. Recently, Colbert provided a special promotion of...
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Colbert sells 3-D printer systems. Recently, Colbert provided a special promotion of zero-interest financing for 2 years on any new 3-D printer system. Assume that Colbert sells Lyle Cartright a 3-D system receiving a $5,000 zero-interest-bearing note on January 1, 2014. The cost of the 3-D printer system is $4,500. Colbert imputes a 6% interest rate on this zero-interest note transaction.
Prepare the journal entry to record the sale on January 1, 2014. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
| Date | Account | Titles and Explanation | Debit | Credit |
| January 1, 2014 | ||||
| (To record sales) | ||||
| January 1, 2014 | ||||
| (To record sales) |
Compute the total amount of revenue to be recognized in 2014.
| Total revenue | $__________ |
Total Revenue:
"Total Revenue" is revenue is collected from the selling of products during the given period of time. The total revenue includes the sale revenue and other income. The sale revenue is calculated by multiplying the sale units with the price of each sold unit.
Answer and Explanation: 1
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View this answerA)The journal entry to record the sale on January 1, 2014 is as follows:
| Date | Account | $Debit ... |
|---|
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