Genuine Parts received a promissory note from a customer on March 1, 2015 . The face amount of the note is $8,000; the terms are 90 days and 9% interest. At the maturity date, the customer pays the amount due for the note and interest. What entry is required on the books of Genuine Parts on the maturity date assuming none of the interest had already been recognized?
a. Increase Cash, $8,000, and decrease Notes Receivable $8,000
b. Increase Cash, $8,180, increase Interest Revenue, $180, and decrease Notes Receivable, $8,000
c. Increase Cash $8,720, decrease Notes Receivable $8,000, and increase Interest Revenue, $720
d. No entry is required; the customer pays the amount due to the bank
b
You might also like to view...
Which of the following should be included on a résumé?
a. education b. contact information c. experience d. all of the above
When _____ a software package, the buyer gains several benefits such as immediate system availability, high quality, low price, and available support.
A. outsourcing B. licensing C. commissioning D. developing
Differentiate between a straight bill of lading and an order bill of lading
What will be an ideal response?
Frank provided in his will that his 50 acres were to go to the city in fee simple for a soccer complex as long as no alcoholic beverages were sold on the premises. If alcohol is sold, the property is to go to Frank's estate. The estate created in the city is a:
a. reversion. b. qualified fee or a fee simple defeasible. c. possibility of reverter. d. contingent remainder.