Question
On June 1, Year 1, Jensen Company acquired an 6.8%, ten-month note receivable from a customer in settlement of an existing account receivable of $300,000.
On June 1, Year 1, Jensen Company acquired an 6.8%, ten-month note receivable from a customer in settlement of an existing account receivable of $300,000. Interest and principal are due at maturity.
Jensens entry to record the collection of this note at maturity includes a:
Multiple Choice
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Credit to Interest Receivable of $11,900.
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Credit to Notes Receivable of $320,400.
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Credit to Interest Revenue of $11,900.
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Credit to Interest Receivable of $5,100.
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Financial Accounting
Authors: Dr Carl S. Warren, Dr James M. Reeve, Philip E. Fess
9th Edition
032418803X, 978-0324188035
