87. J. Knolls Company has a current ratio of 3.10. Which of the following events would cause its current ratio to increase? A) B) C) D) Collection of an account receivable Payment of an account payable Purchase of office supplies on account Purchase of equipment on account 89. Holland Company paid Luxembourg Company for merchandise with a S6,400, 90-day, 8% note dated May 10 If Holland Company pays the note at maturity, what entry should be made at that time? A) Notes Payable 6,528 Interest Payable Cash 128 6,400 B) Cash 6,528 Notes Payable Interest Payable 128 6,400 6,400 128 C) Notes Payable Interest Expense Cash 6,528 D) Notes Payable 6,400 nterest Expense Cash 128 6,272