EX 9-21 Entries for notes receivable

The series of seven transactions recorded in the following T accounts were related to a sale to a customer on account and the receipt of the amount owed. Briefly describe each transaction.

CASH

NOTES RECEIVABLE

(7)

40,602

(5)

40,000

(6)

40,000

ACCOUNTS RECEIVABLE

SALES RETURNS AND ALLOWANCES

(1)

50,000

(3)

10,000

(3)

10,000

(6)

40,400

(5)

40,000

(7)

40,400

MERCHANDISE INVENTORY

COST OF MERCHANDISE SOLD

(4)

6,000

(2)

30,000

(2)

30,000

(4)

6,000

SALES

INTEREST REVENUE

(1)

50,000

(6)

400

(7)

202