On January 15, 2020, Raymond Company received a two-month, 9%, $5,000 note from Mattel for the settlement of his open account. The entry by Raymond Company on March 15, 2020 if Mattel dishonors the note and collection is expected is:

Question 12Select one:

a. Accounts ReceivableMattel ................................. 5,000 Notes Receivable................................................. 5,000

b. Accounts ReceivableMattel ................................. 4,925 Interest Lost.................................................................. 75