Cambria Limited took a $250,000 two-year note receivable from a customer in connection with a...
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Cambria Limited took a $250,000 two-year note receivable from a customer in connection with a major inventory sale transaction on 1 January 20X5. The note required annual end-of-year interest payments of 8%, and the principal was due at the end of 20X6. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.)
Start with question 2, 3 and then 5.
5. Prepare journal entries to record the initial sale transaction and each payment on the books of the customer who bought inventory and owes the note, consistent with requirement 2. (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Record the initial sales revenue with discount. Note: Enter debits before credits. Date General Journal Debit Credit 1 January 20X5 Record entry Clear entry View general journal
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