Question
Question Content Area Paper Company receives a $3,916, 3-month, 6% promissory note from Dame Company in settlement of an open account receivable. What entry will
Question Content Area
Paper Company receives a $3,916, 3-month, 6% promissory note from Dame Company in settlement of an open account receivable. What entry will Paper Company make upon receiving the note?
a.
| Account | Debit | Credit |
|---|---|---|
| Notes ReceivableDame Company | $3,916 | |
| Interest Revenue | $59 | |
| Accounts ReceivableDame Company | $3,916 | |
| Interest Receivable | $59 |
b.
| Account | Debit | Credit |
|---|---|---|
| Notes ReceivableDame Company | $3,916 | |
| Accounts ReceivableDame Company | $3,916 |
c.
| Account | Debit | Credit |
|---|---|---|
| Notes ReceivableDame Company | $3,975 | |
| Accounts ReceivableDame Company | $3,916 | |
| Interest Revenue | $59 |
d.
| Account | Debit | Credit |
|---|---|---|
| Notes ReceivableDame Company | $3,975 | |
| Accounts ReceivableDame Company | $3,975 |
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Financial Accounting
Authors: Robert Kemp, Jeffrey Waybright
2nd edition
978-0132771801, 9780132771580, 132771802, 132771586, 978-0133052152
