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On January 1 , Orange Corp. accepted a one - year note for $ 9 , 0 0 0 at 7 % from one of

On January 1, Orange Corp. accepted a one - year note for $9,000 at 7% from one of its customers. When the note matured on December 31, the customer was unable to pay, and the company treated it as a dishonored note. The journal entry would be:
A. Accounts Receivable
9,630
Note Receivable
Interest Revenue
9,000
630
B. Bad Debts Expense
Notes Receivable
Interest Revenue
9,000
630
C. Accounts Receivable
Notes Receivable
9,630
9,630
D.
Cash
9,630
Note Receivable
9,630
Interest Revenue
9,000
630
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