1. A $9,600, 60-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is a.debit Notes Receivable, $9,792; credit Accounts Receivable, $9,600; Credit Interest Receivable, $192. b.debit Accounts Receivable, $9,792; credit Notes Receivable, $9,600; Credit Interest Revenue, $192. c.debit Cash, $9,792; credit Notes Receivable, $9,792. d.debit Notes Receivable, $9,792; credit Accounts Receivable, $9,792.

1. A $9,600, 60-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is a.debit Notes Receivable, $9,792; credit Accounts Receivable, $9,600; Credit Interest Receivable, $192. b.debit Accounts Receivable, $9,792; credit Notes Receivable, $9,600; Credit Interest Revenue, $192. c.debit Cash, $9,792; credit Notes Receivable, $9,792. d.debit Notes Receivable, $9,792; credit Accounts Receivable, $9,792.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?
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A $9,600, 60-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is a.debit Cash, $9,792; credit Notes Receivable, $9,792. b.debit Notes Receivable, $9,792; credit Accounts Receivable, $9,600; Credit Interest Receivable, $192. c.debit Notes Receivable, $9,792; credit Accounts Receivable, $9,792. d.debit Accounts Receivable, $9,792; credit Notes Receivable, $9,600; Credit Interest Revenue, $192.
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