Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company accepts a three month, 6%, $2,000, promissary note as settlement of DEF Companys account on Dec 16. The entry to record this transaction
A company accepts a three month, 6%, $2,000, promissary note as settlement of DEF Companys account on Dec 16. The entry to record this transaction on ABCs books on Dec. 16 is:
a. Notes Receivable $2,030
Accounts receivable $2,000
Interest Revenue $ 30
b. Notes Receivable $2,000
Cash $2,000
c. Notes Receivable $2,120
Accounts receivable $2,000
Interest Revenue $ 120
d. Notes Receivable $2,000
Accounts receivable $2,000
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