Assume that on May 31st, Al Sawadi LLC asks to extend its past-due OMR 2000 account payable to Baraka LLCC. After some negotiations, Baraka LLC agrees to accept OMR 500 cash and a 60-day, 10%, OMR 1500 note payable to replace the account payable. From the following given options choose the correct journal entry to be recorded in the books of Al Sawadi LLC at the time of note payable on due date. ( Note: Assume 360 days in a year) a. Dr Cash OMR OMR 1525 and Cr Note payable A/C OMR 1500 Cr interest expenses A/C OMR 25 b. None of the given options c. Dr Note payable A/C OMR 1500 Dr interest expenses A/C OMR 150 and Cr Cash OMR OMR 1650 d. Dr Note payable A/C OMR 1500 Dr interest expenses A/C OMR 25 and Cr Cash OMR OMR 1525 Clear my choice

Assume that on May 31st, Al Sawadi LLC asks to extend its past-due OMR 2000 account payable to Baraka LLCC. After some negotiations, Baraka LLC agrees to accept OMR 500 cash and a 60-day, 10%, OMR 1500 note payable to replace the account payable. From the following given options choose the correct journal entry to be recorded in the books of Al Sawadi LLC at the time of note payable on due date. ( Note: Assume 360 days in a year) a. Dr Cash OMR OMR 1525 and Cr Note payable A/C OMR 1500 Cr interest expenses A/C OMR 25 b. None of the given options c. Dr Note payable A/C OMR 1500 Dr interest expenses A/C OMR 150 and Cr Cash OMR OMR 1650 d. Dr Note payable A/C OMR 1500 Dr interest expenses A/C OMR 25 and Cr Cash OMR OMR 1525 Clear my choice

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 14EB: Anderson Air is a customer of Handler Cleaning Operations. For Anderson Airs latest purchase on...

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Assume that on May 31st, AI Sawadi LLC asks to extend its past-due OMR 2000 account payable to Baraka LLCC. After some negotiations, Baraka LLC agrees to accept OMR 500 cash and a 60-day, 10%, OMR 1500 note payable to replace the account payable. From the following given options choose the correct journal entry to be recorded in the books of Al Sawadi LLC at the time of note payable on due date. (Note: Assume 360 days in a year) a. Dr Note payable A/C OMR 1500 Dr interest expenses A/C OMR 150 and Cr Cash OMR OMR 1650 b. Dr Note payable A/C OMR 1500 Dr interest expenses A/C OMR 25 and Cr Cash OMR OMR 1525 c. None of the given options d. Dr Cash OMR OMR 1525 and Cr Note payable A/C OMR 1500 Cr interest expenses A/C OMR 25
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