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5.Wool Company sells a variety of merchandise (goods) to customers on account. If any customer fails to pay an invoice when due must replace their
5.Wool Company sells a variety of merchandise (goods) to customers on account. If any customer fails to pay an invoice when due must replace their account receivable with an interest-bearing note. The company adjusts and closes its accounts at December 31. Among the transactions relating to notes receivable were the following: October 1, 2019 Received from a customer (Corner Store) a seven-month, 12 percent note for $30,000 in settlement of an account receivable due today. June 1, 2020 Collected in full the seven- month, 12 percent note receivable from Corner Store, including interest. In general journal, to record the adjustment for interest on December 31, 2019: (3 Points) Interest revenue is debited by $900 Interest receivable is credited by $2,100 Interest receivable is debited by $900 Interest receivable is debited by $300
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