Question
A $8,000, 30-day, 12% note dated November 15 is received from a customer to replace an account receivable. The journal entry to record this event
A $8,000, 30-day, 12% note dated November 15 is received from a customer to replace an account receivable. The journal entry to record this event is
debit Accounts Receivable, $6,060; credit Notes Receivable, $6,000; Credit Interest Revenue, $60
debit Notes Receivable, $8,000; credit Accounts Receivable, $8,000
debit Cash, $8,080 credit Notes Receivable, $8,080
span style="font-size: 12pt; font-family: quot;Times New Romanquot;; color: #000000;"span style="font-size: 12pt;"debit Cash, $8,080 credit Notes Receivable, $8,080/span/span: Incorrect.
debit Accounts Receivable, $8,080; credit Notes Receivable, $8,000; Credit Interest Receivable, $80
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
ISE Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Mark Edmonds, Philip Olds
9th Edition
1260565483, 9781260565485
