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Gambit Stores accepts from Leonard Co. a $3,400, 90-day, 6% note dated May 10 in settlement of Leonards overdue open account. The note matures on
Gambit Stores accepts from Leonard Co. a $3,400, 90-day, 6% note dated May 10 in settlement of Leonards overdue open account. The note matures on August 8. Which of the following statement is correct? A. Interest payable at maturity date is $51. B. The journal entry that Kroger makes at the maturity date, assuming Leonard pays the note and interest in full at that time: Notes Receivable 3,400 Interest Revenue 51 10 Cash 3,451 C. Note receivable is a liability account. D. Note receivable has a normal credit balance
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