On July 1, 2018, the Juliet Corporation issues $4,000,000 of 10-year bonds for $3,560,000 when the market rate of interest was 8%. Juliet Corporation uses the effective-interest method of amortization. Interest is paid each June 30 and December 31. The entry to record the first semi-annual interest payment on December 31, 2018, will include a: Select one: O a. debit to Interest Expense for $142,400 O b. credit to Bonds Payable for $284,800 Oc debit to Bonds Payable for $160,000 O d. credit to Interest Payable for $320,000
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
A 43.
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