Reference no: EM132889421

Question 1 - On April 19, 2021, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising payment of $220,000 in four years. The applicable effective interest rate is 7%.

What amount of sales revenue would Millipede recognize on April 19, 2021, for the Hartwood transaction? (Round your final answer to nearest whole dollar.)

Question 2 - Marin Company's general ledger indicates a cash balance of $23,540 as of September 30, 2021. Early in October Marin received a bank statement indicating that during September Marin had an NSF check of $2,700 returned to a customer and incurred service charges of $40. Marin also learned it had incorrectly recorded a check received from a customer on September 15 as $800 when in fact the check was for $880.

Calculate Marin's correct September 30, 2021, cash balance.

Question 3 - Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,400 tires to the Nixon Car Company for $55 each. The terms of the sale were 2/15, n/30. Harwell uses the gross method of accounting for cash discounts.

1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2021.

2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on August 15, 2021.