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On November 1, 2024 Laurel Company accepted a three-month, 6% note for $12,000 from one of its customers to settle a past due account receivable.
On November 1, 2024 Laurel Company accepted a three-month, 6% note for $12,000 from one of its customers to settle a past due account receivable. On December 31, 2024, the company made the appropriate year-end adjusting entry for interest. On February 1, 2025, the customer paid Laurel Company the note and interest in full as promised. What journal entry should the company make to record the collection of cash on February 1, 2025? (Round your answers to the nearest whole dollar.) Multiple Choice Account Debit Credit Cash 12,180 Notes Receivable 12,180 Account Debit Credit Cash 12,180 Notes Receivable 12,000 Interest Revenue 180 Account Debit Credit Cash 12,180 Notes Receivable 12,000 Interest Receivable 120 Interest Revenue 60 Account Debit Credit Notes Receivable 12,720 Cash 12,720
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