EXTENDED PAYMENT TERMS 1/1/2021 Slaughter & Son sold a Deluxe Funeral Package to a customer (who had not bee
Posted: Thu May 19, 2022 11:26 am
EXTENDED PAYMENT TERMS
1/1/2021
Slaughter & Son sold a Deluxe Funeral Package to a customer
(who had not been feeling
well lately) in exchange for a zero interest bearing note with a
face value of $6,000 with
payment due in 12 months.
Fair value of the funeral package at the date of sale
5,500
Cost of funeral package
4,200
Prepare the journal entries for Slaughter and Sons for 2021
and 2022
1/1/2021
Slaughter & Son sold a Deluxe Funeral Package to a customer
(who had not been feeling
well lately) in exchange for a zero interest bearing note with a
face value of $6,000 with
payment due in 12 months.
Fair value of the funeral package at the date of sale
5,500
Cost of funeral package
4,200
Prepare the journal entries for Slaughter and Sons for 2021
and 2022