Cheyenne Family Importers sold goods to Tung Decorators for $39,600 on November 1, 2020, accepting Tung's $39,600, 6-month, 6% note.
Prepare Cheyenne's November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
11/1/20
Notes Receivable
39,600
Sales
39,600
12/31/20
Interest Receivable
1,188
Interest Revenue
1,188
5/1/21
Cash
40,788
Notes Receivable
39,600
Interest Receivable
1,188
Interest Revenue
0
Sales
0