a. Accounts Receivable S. Jones....... On March 15, 2020, El Centro Company received a three-month, 10%,...

Transcribed Image Text:

a. Accounts Receivable S. Jones....... On March 15, 2020, El Centro Company received a three-month, 10%, $10,000 note from Sam Jones for the settlement of his open account. The entry by El Centro Company on June 15, 2020 if Jones dishonors the note and collection is expected is: Notes Receivable............. 10,000 10,000 b. Accounts Receivable-S. Jones... 10,000 Interest Lost.... 250 Notes Receivable. 10,250 c. Accounts Receivable-S. Jones. 10,250 Notes Receivable.. 10,000 Interest Revenue. 250 d. Bad Debt Expense. 10,250 Notes Receivable.. 10,250 a. Accounts Receivable S. Jones....... On March 15, 2020, El Centro Company received a three-month, 10%, $10,000 note from Sam Jones for the settlement of his open account. The entry by El Centro Company on June 15, 2020 if Jones dishonors the note and collection is expected is: Notes Receivable............. 10,000 10,000 b. Accounts Receivable-S. Jones... 10,000 Interest Lost.... 250 Notes Receivable. 10,250 c. Accounts Receivable-S. Jones. 10,250 Notes Receivable.. 10,000 Interest Revenue. 250 d. Bad Debt Expense. 10,250 Notes Receivable.. 10,250