Majesty Productions accepted a $7,200, 120-day, 6% note from Swartz Studio on March 1. On the date the note matures, Swartz is unable to pay, but Majesty intends to continue collection efforts. What entry should Majesty record on the maturity date for this dishonored note?
A. Debit Accounts Receivable $7,200; credit Notes Receivable $7,200.
B. Debit Accounts Receivable $7,056; debit Interest Revenue $144; credit Notes Receivable $7,200.
C. Debit Accounts Receivable $7,344; credit Interest Revenue $144; credit Notes Receivable $7,200.
D. Debit Accounts Receivable $7,200; credit Allowance for Doubtful Accounts $7,200.
E. Debit Bad Debt Expense $7,344; credit Notes Receivable $7,344.
Answer: C
You might also like to view...
A(n) _____ is any manipulation of data, usually with the goal of producing information.
A. transaction B. process C. brownout D. encryption
If an estimate for an activity is deterministic, then ______.
A. sufficient historical information is available to make this determination with a reasonable degree of accuracy B. the estimate is based on the probability that the activity will be completed in a given time frame C. the estimate is based on the probability that the activity will be completed in a given time frame plus/minus three standard deviations D. the estimate is based on a stochastic model
The rising scale on which efficiency improves as a result of cumulative experience and learning is known as the __________.
Fill in the blank(s) with the appropriate word(s).
Free cash flow is cash from operations, less cash for :
A) dividends and cash for fixed assets needed to maintain productivity. B) dividends and cash to redeem bonds payable. C) fixed assets needed to maintain productivity. D) dividends, cash for fixed assets needed to maintain productivity, and cash to redeem bonds payable.