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Timothy Company sold merchandise to a customer on October 17 of 2004. They accepted a $4,800, 90-day, 10% note as payment. If Timothy Company's accounting
Timothy Company sold merchandise to a customer on October 17 of 2004. They accepted a $4,800, 90-day, 10% note as payment. If Timothy Company's accounting period ends on December 31, 2004 [Oct 17 to Dec 31 = 75 days], Timothy Company's journal entry on Ja nuary 15 (when the note plus interest is received) will include: A) Credit to Interest Revenue for $120 B) Credit to Interest Revenue for $480 C) Credit to Interest Receivable for $20 D) Credit to Interest Receivable for $100 E) Debit to Cash for $5,280
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