On October 1, 2018, Mandy's Electronics Sold Merchandise in Exchange

question 203

True/False

On October 1, 2018, Mandy's Electronics sold merchandise in exchange for a 4-month, $20,000 note receivable, with 9% interest. Interest revenue of $600 is earned in 2018.

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Definitions:

Credit Sales

Transactions where the customer buys goods or services on account, paying the supplier at a later date.

COGS

The specific costs tied to manufacturing goods that a business sells.