Question
Frontline Company holds a $1,000, 12%, 90-day note of J. Candioto. At maturity, Candioto dishonors the note. How would the company record dishonoring of the
Frontline Company holds a $1,000, 12%, 90-day note of J. Candioto. At maturity, Candioto dishonors the note. How would the company record dishonoring of the note? Debit Accounts Receivable-J. Candioto for $1,000 and credit Notes Receivable for $1,000. Debit Notes Receivable-J. Candioto for $1,000 and credit Accounts Receivable for $1,000. Debit Accounts Receivable-J. Candioto for $1,030 and credit Notes Receivable for $1,030. Debit Notes Receivable-J. Candioto for $1,030, credit Interest Revenue for $30, and credit Accounts Receivable for $1,000. Debit Accounts Receivable-J. Candioto for $1,030, credit Interest Revenue for $30, and credit Notes Receivable for $1,000.
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