On December 1,2013,Parsons Sales Sold Machinery to a Customer for $2,000.The

question 136

Essay

On December 1,2013,Parsons Sales sold machinery to a customer for $2,000.The customer could not pay at the time of sale,but agreed to pay 9 months later,and signed a 9-month note at 12% interest.Parsons accrues interest only at year-end.On September 1,Parsons collected the whole amount due.Please provide the journal entry needed to record the settlement of the note.
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Definitions:

Readily Marketable

Assets or securities that can be easily sold or converted into cash, typically without significant loss of value.

Short-Term Investments

Assets that can be easily converted into cash within a short timeframe, typically one year or less, without losing value.

Marketable Debt Securities

Investments in bonds or other debt securities that are available for sale before their maturity date.

Idle Cash

Refers to the money that a company has not invested or used in any way to earn more income.