On December 1,2019,Pinewood Company Sold Machinery to a Customer for $2,000.Pinewood

question 185

Essay

On December 1,2019,Pinewood Company sold machinery to a customer for $2,000.Pinewood regularly sells machinery.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.Prepare the journal entry to record the revenue at the time of sale.Ignore the entry for cost of goods sold.Omit explanation.

---

Definitions:

Lessor

The party in a lease agreement who owns the asset and grants the lessee the right to use the asset for a specified period.

Lessee

The party in a lease agreement who uses or occupies the leased asset and is obligated to pay the lease payment to the lessor.

Amortization

The method of slowly amortizing the original expense of an intangible asset throughout a specified duration.

Natural Resources

Raw materials that are obtained from the Earth, which can include water, minerals, forests, and fossil fuels.