Question
On December 1, 2010, a company accepted a $6,000, 9%, 3-month note from a customer in payment of his overdue account. The company prepares year-end
On December 1, 2010, a company accepted a $6,000, 9%, 3-month note from a customer in payment of his overdue account. The company prepares year-end financial statements on December 31. What entry should the company make on March 1, 2011, when the note and interest are paid?
| a. | Cash $6,135 Notes Receivable $6,135
| |
| b. | Cash $6.135 Notes Receivable $6,000 Interest Revenue $135
| |
| c. | Cash $6,135 Notes Receivable $6,000 Interest Receivable $90 Interest Revenue $45
| |
| d. | Cash $6,135 Notes Receivable $6,000 Interest Receivable $45 Interest Revenue $90
|
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Ethical Obligations and Decision Making in Accounting Text and Cases
Authors: Steven Mintz, Roselyn Morris
3rd edition
007786221X, 978-0077862213
