Which of the following is not true about the discount on short-term notes payable? a. The Discount on Notes Payable account should be reported as an asset on the balance sheet. b. When there is a discount on a note payable, the effective interest rate is higher than the stated discount rate
Which of the following is not true about the discount on short-term notes payable? a. The Discount on Notes Payable account should be reported as an asset on the balance sheet. b. When there is a discount on a note payable, the effective interest rate is higher than the stated discount rate
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 1MC: The dollar difference between Accounts Receivable and Allowance for Doubtful Accounts is called (a)...
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Which of the following is not true about the discount on short-term notes payable?
a. The Discount on Notes Payable account should be reported as an asset on the balance sheet .
b. When there is a discount on a note payable, the effective interest rate is higher than the stated discount rate.
c.The Discount on Notes Payable account has a debit balance.
d. Discount on Notes Payable is a contra account to Notes Payable.
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