Question
On August 1, Year 1 Hernandez Company loaned $48,000 cash to Acosta Company. The one-year note carried a 5% rate of interest. Which of the
On August 1, Year 1 Hernandez Company loaned $48,000 cash to Acosta Company. The one-year note carried a 5% rate of interest. Which of the following journal entries would be required to recognize the collection of the principal balance in Year 2?
Account Titles Debit Credit Notes Receivable 50,400 Cash 50,400
Account Titles Debit Credit Cash 50,400 Notes Receivable 50,400
Account Titles Debit Credit Notes Receivable 48,000 Cash 48,000
Account Titles Debit Credit Cash 48,000 Notes Receivable 48,000
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Advanced Accounting
Authors: Debra C. Jeter, Paul Chaney
2nd Edition
0471218529, 978-0471218524
