A $14,400, 30-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is the one listed below. Select the correct answer. a-debit Notes Receivable, $14,544; credit Accounts Receivable, $14,544 b-debit Cash, $14,544; credit Notes Receivable, $14,544 c-debit Accounts Receivable, $14,544; credit Notes Receivable, $14,400; Credit Interest Revenue, $144 d-debit Notes Receivable, $14,544; credit Accounts Receivable, $14,400; Credit Interest Receivable, $144

A $14,400, 30-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is the one listed below. Select the correct answer. a-debit Notes Receivable, $14,544; credit Accounts Receivable, $14,544 b-debit Cash, $14,544; credit Notes Receivable, $14,544 c-debit Accounts Receivable, $14,544; credit Notes Receivable, $14,400; Credit Interest Revenue, $144 d-debit Notes Receivable, $14,544; credit Accounts Receivable, $14,400; Credit Interest Receivable, $144

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
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A $14,400, 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 Accounts Receivable, $14,688; credit Notes Receivable, $14,400; Credit Interest Revenue, $288. b.debit Notes Receivable, $14,688; credit Accounts Receivable, $14,688. c.debit Notes Receivable, $14,688; credit Accounts Receivable, $14,400; Credit Interest Receivable, $288. d.debit Cash, $14,688; credit Notes Receivable, $14,688.
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