Question
On August 15, an entity sold goods for which it received a note bearing the market rate of interest on that date. The four-month note
On August 15, an entity sold goods for which it received a note bearing the market rate of interest on that date. The four-month note was dated July 15. Note principal, together with all interest, is due November 15. When the note was recorded on August 15, which of the following accounts increased?
a. Interest revenue
b. Unearned discount
c. Interest receivable
d. Prepaid revenue
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ANSWER Interest receivable Explanati...
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Accounting Volume 2
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
2nd Canadian edition
176501452, 978-0176501457, 978-0176509743
