Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cart Company accepted a note receivable from a credit customer who failed to pay their $2,000 Accounts Receivable balance. The customer signed a promissory note

Cart Company accepted a note receivable from a credit customer who failed to pay their $2,000 Accounts Receivable balance. The customer signed a promissory note which was accepted for 45 days at 5% interest. At the end of 45 days, the customer pays the balance on Notes Payable and interest. Assuming a 360 day year, what is the journal entry for receiving the payment of the note and interest? O O O Date Date Date Date Accounts Notes Receivable 2,000 Interest Revenue 100 Cash Accounts Cash Notes Receivable 2,000.00 Interest Revenue 12.50 Cash Accounts Cash Debit Credit Interest Revenue Notes Receivable Accounts Debit Credit I DON'T KNOW YET Interest Revenue Notes Receivable 2,100 2,012.50 Debit Credit 2,012.50 12.50 2,000.00 Debit Credit 2,100 100 ,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Technical Analysis Of Stock Trends

Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti

10th Edition

1439898189, 978-1439898185

More Books

Students also viewed these Finance questions