Classification of Receivables

1. Accounts receivable

2. Notes receivable

3. Long-term notes receivable

Recording Accounts Receivable

On December 15, 20x1, Company R sold 2,800 units of merchandise on account at $15 per unit price.

The cost of merchandise is $12 per unit.

        Prepare a journal entry to record this transaction.

        

Accounts receivable

42,000

   Sales revenue

42,000

Cost of goods sold

33,600

   Merchandise

33,600