Winkler Company borrows $87,000 and pledges its receivables as security. The journal entry to record this transaction would be:
A. Debit Note Receivable $87,000 and credit Accounts Receivable $87,000.
B. Debit Cash $87,000 and credit Notes Payable $87,000.
C. Debit Cash of $87,000 and credit Accounts Payable $87,000.
D. Debit Cash of $87,000 and credit Accounts Receivable $87,000.
E. Debit Accounts Receivable $87,000 and credit Notes Payable $87,000.
Answer: B
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All manufacturing costs incurred and assigned to products that are being produced are classified as
a. variable costs. b. allocated costs. c. product costs. d. overhead costs.
The primary difference between a fixed (static) budget and a flexible budget is that a fixed budget
A) cannot be changed after the period begins, whereas a flexible budget can be changed after the period begins. B) is concerned only with future acquisitions of fixed assets, whereas a flexible budget is concerned with expenses that vary with sales. C) is a plan for a single level of production, whereas a flexible budget is several plans (one for each of several production levels). D) includes only fixed costs, whereas a flexible budget includes only variable costs.
__________are business customers who consider numerous suppliers, solicit bids, and study all proposals carefully before selecting one
Fill in the blanks with correct word.
No standard rule identifies the best basis of allocating expenses across departments, so it is impossible to allocate costs in a manner that will be perceived as fair.
Answer the following statement true (T) or false (F)