Question $14$ of $20$

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A customer charges a treadmill at Sports Equipment Shop. The price is $$4,000$ and the financing charge is $8\%$ per annum if the bill is not paid in $30$ days. The customer fails to pay the bill within $30$ days and a finance charge is added to the customer's account.

The accounts affected by the journal entry made by Sports Equipment Shop to record the finance charge are

Accounts Receivable Interest Revenue

Accounts Receivable Interest Payable

Accounts Receivable

Cash

Cash

Finance Receivable