Assume that on December 1, a note which has a face value of $9,000, bears interest at 9 percent for 120 days, received from a customer as an extension of his of past – due account is dishonored. The entry that would be made to record the dishonor (ignoring interest) is:
a. Notes receivable 9,000
Cash 9,000
b. Accounts receivable 9,000
Cash 9,000
c. Accounts receivable 9,000
Notes receivable 9,000
d. Cash 9,000
Accounts Receivable 9,000
C
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