Monday, September 29, 2008

Journal Entry NoteReceivable

A $6,000, 30-day, 12% note receivable is not paid by the maker at maturity. The accounting journal entry to recognize this event will:

A. Credit Interest Receivable, $60
B. Debit Accounts Receivable for $6,060
C. Debit Notes Receivable, $6,060
D Credit Notes Receivable $6,060

Correct Answer : B

1 comment:

Apollos said...

Hmmm... why accounts receivable and not notes receivable?

Oh wait nevermind, I got it now :) had to pray first! Hahaha

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