Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On April 12, Hong Company agrees to accept a 60-day, 8%. $9,300 note from Indigo Company to extend the due date on an overdue account.

image text in transcribed
On April 12, Hong Company agrees to accept a 60-day, 8%. $9,300 note from Indigo Company to extend the due date on an overdue account. What is the journal entry that Indigo Company would make, when it records payment of the note on the maturity date? (Use 360 days a year) Multiple Choice Debit Cash $9,424, credit interest Revenue $124 credit Notes Receivable $9,300, Debit Notes Payable $9,300, debit Interest Expense $186; credit Cash $9,486, Debit Notes Payable $9,300; credit Interest Expense $124. Credit Cash 89,176 O Debit Notes Payable $9,300; debit Interest Expense $124, Credit Cash $9.424 O Debit Cash $9,424: credit interest Revenue $124. credit Notes Payable $9,300, Prev 1 of 5 Next >

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

Effective Auditing For Corporates Ensuring That All The Risks Are Covered

Authors: Bloomsbury, Joe Oringel

1st Edition

1849300445, 978-1849300445

More Books

Students also viewed these Accounting questions

Question

7-16 Compare Web 2.0 and Web 3.0.

Answered: 1 week ago