alley Spa purchased $9,600 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 14% promissory note for $9,600. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.)

options:

Multiple Choice

• Debit Accounts Receivable $9,824; debit Bad Debt Expense $224; credit Notes Receivable $9,600.

• Debit Accounts ReceivableValley Spa $9,824, credit Interest Revenue $224; credit Notes Receivable $9,600.

• Debit Accounts ReceivableValley Spa $9,600; credit Notes Receivable $9,600.

• Debit Bad Debt Expense $9,824; credit Accounts Receivable $9,824.

• Debit Bad Debt Expense $9,600; credit Notes Receivable $9,600.