1 answer

Quick Running Shoes reports the following: (Click the icon to view the information.) Journalize all entries...

Question:

Quick Running Shoes reports the following: (Click the icon to view the information.) Journalize all entries required for Quic

Quick Running Shoes reports the following: (Click the icon to view the information.) Journalize all entries required for Quick Running Shoes. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit More Info - X 2024 Apr. 3 96,000 Accounts Receivable Sales Revenue 96,000 2024 Apr. 3 Record credit sales Oct. 1 Recorded credit sales of $96.000. Ignore Cost of Goods Sold. Laaned $17,000 to Karen Parker, an executive with the company, on a one-year, 6% nate. Accrued interest revenue on the Parker note. . Dec. 31 2025 Oct. 1 Oct. 1, 2024: Loaned $17,000 to Karen Parker, an executive with the company, on a one-year, 6% note. Date Accounts and Explanation Debit Credit 2024 Oct. 1 Note Receivable Karen Parker 17.000 Cash 17,000 Collected the maturity value of the Parker note. Print Done Recorded loan to employee. Dec 31, 2024: Accrued interest revenue on the Parker note. Date Accounts and Explanation Debit Debit Credit 2024 Dec. 31 Interest Receivable 255 Interest Revenue 255 Accrued interest revenue Oct. 1, 2025: Collected the maturity value of the Parker note. (Prepare a single compound joumal entry) Date Accounts and Explanation Debit Credit 2025 Oct. 1 18,020 Cash Note Receivable—Karen Parker 17,000 Interest Receivable 255 Interest Revenue 765 Collected note receivable plus interest.

Answers

Your answer to present journal entry is absolutly correct.

Each and every journal entry has been perfectly fixed. However one change could be made that is Debit the account Note receivable instead of interest receivable. Since the interest will likely to receive with the principal amount of note receivables.

You are suggested to change name of interest receivable with 6% Note receivable in the journal entry of december 31.

Please comment for any additional explanation.

Thanks

.

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