Question
Leek Company receives a $12,000, 3-month, 5% promissory note from Rey Company in settlement of an open accounts receivable. What entry will Leek Company make
Leek Company receives a $12,000, 3-month, 5% promissory note from Rey Company in settlement of an open accounts receivable. What entry will Leek Company make upon receiving the note?
a. Notes receivable ............12,150
Accounts receivable-Rey Company.............12,150
b. Notes Receivable.............12,150
Accounts receivable-Rey Company............12,000
Interest Revenue.........................................150
c. Notes Receivable...............12,000
Interest Receivable.............150
Accounts Receivable-Rey Company.............12,000
Interest Revenue.............................................150
d. Notes Receivable..................12,000
Accounts Receivable-Rey Company.....................12,000
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