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CHAPTER 9, PRACTICE SOLUTIONQUESTION 1Nohonani Merchandising, which has a December 31 year end, and uses a perpetual inventorysystem, completed the following transactions during 2021 and 2022:2021Oct. 1Sold merchandise to Bravo Links, terms n/60, $4,000.Oct.3Negotiated with Bravo Links to exchange the account receivable for a 120-day, 10%note for $4,000.Dec. 31Accrued interest on the Bravo Links note.2022Feb. 1 Collected in full from Bravo LinksPrepare the necessary journal entries to record the above transactions.
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Double entry bookkeeping system, Bravo Links

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