On November 1, Eli Co. received a $6,000, 60-day, 6% note from a customer as payment on his $6,000 account. Eli’s journal entry to

On November 1, Eli Co. acquired a $6,000, 60-day, 6% word from a buyer as fee on his $6,000 account. Eli’s journal entry to report this transaction on November 1, would come with a:

Dr.          Cr. Observe Receivable   $6,000 Account Receivable            $6,000 Clarification: Observe is acquired towards a fee of sale mad on credit score. A brand new receivable can be constructed with the title of Observe receivable, so this account can be debited.   To deduct the worth from the account receivable we’ll credit score the account receivable account attributable to its debit nature. In a while the curiosity can be accrued and added on this stability.

credit score accounts receivable for $6,000 Clarification: it is because Eli co acquired a fee into their account from a buyer which is a credit score to their account. It might have been a debit if Eli co paid out or made an expenditure from their account.

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Credit score to Accounts Receivable for $6,000.  Debit to Notes Receivable for $6,000. Clarification: Within the given report, Eli Co. might want to report the possible money influx and money outflow within the account doc. The amount of cash that the corporate acquired is credited to the corporate’s account whereas the amount of cash the corporate pays again to the lender is recorded as a debit. The debit can be paid later.

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