Reference no: EM13938137
ACCOUNTING FOR NOTES RECEIVABLE
Yarnell Electronics sells computer systems to small businesses. During 2009, Yarnell engaged in the following activities involving notes receivable:
a. On November 1, Yarnell sold a $5,000 system to Ross Company. Ross gave Yarnell a six-month, 11 percent note as payment.
b. On December 1, Yarnell sold an $8,000 system to Searfoss, Inc. Searfoss gave Yar- nell a nine-month, 10 percent note as payment.
c. On April 30, 2010, Ross paid the amount due on its note.
d. On August 31, 2010, Searfoss paid the amount due on its note.
Required:
Prepare entries for Yarnell Electronics to record these transactions.
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