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Q 8.30: On July 1, Harper Corporation writes Lightning Manufacturing a $5,000, two-month, 10% promissory note to settle an account. On the same date, Lightning
Q 8.30: On July 1, Harper Corporation writes Lightning Manufacturing a $5,000, two-month, 10% promissory note to settle an account. On the same date, Lightning records a $5,083 debit to Notes Receivable, an $83 credit to Interest Revenue, and a $5,000 credit to Accounts Receivable in its books. In this scenario, Lightning's revenues will be understated because it improperly included the interest revenue when first recording the note. B Lightning's assets will be understated because it improperly included the interest revenue when first recording the note. Lightning's revenues will be overstated because it improperly included the interest revenue when first recording the note. Lightning's revenues will be accurate because it properly included the interest revenue when first recording the
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