Short-Term Notes Payable Bowden Co. Buyer/Borrower) Coker Co Seller/Creditor) Description Debit Credit Description Debit Credit Mdse Inventory 10.000 Accts. Receivable 10.000 Accts Payable 10.000 Sales 10.000 Cost of Mdse Sold 7.500 Mdse Inventory 7,500 Accts Payable 10.000 Notes Receivable 10.000 Notes Payable 10.000 Accts. Receivable 10.000 Notes Payable 10.000 Cash 10,200 Interest Expense 200 Interest Revenue 200 Cash 10.200 Notes receivable 10.000 July 30. Bowden Co paid the amount due nterest:$10,000x12%X60/360=$200 c10-5C10 - 5 Short-Term Notes Payable Description Debit Credit Mdse. Inventory 10,000 Accts. Payable 10,000 Accts. Payable 10,000 Notes Payable 10,000 Notes Payable 10,000 Interest Expense 200 Cash 10,200 Accts. Receivable 10,000 Sales 10,000 Cost of Mdse. Sold 7,500 Mdse. Inventory 7,500 Notes Receivable 10,000 Accts. Receivable 10,000 Cash 10,200 Interest Revenue 200 Notes Receivable 10,000 Bowden Co. (Buyer/Borrower) Coker Co. (Seller/Creditor) Description Debit Credit July 30. Bowden Co. paid the amount due. Interest: $10,000 x 12% x 60 / 360 = $200