On November 1, Orpheum Company accepted a $10,000, 90-day, 8% note from a customer to settle his account. What entry should be made on the November 1 to record the acceptance of the note?
A. Debit Note Receivable $10,000; credit Accounts Receivable $10,000.
B. Debit Sales $10,000; credit Accounts Receivable $10,000.
C. Debit Note Receivable $10,000; credit Sales $10,000.
D. Debit Note Receivable $10,200; credit Accounts Receivable $10,000; credit Interest Revenue $200.
E. Debit Note Receivable $10,000; credit Cash $10,000.
Answer: A
You might also like to view...
In which of the following countries are business cards handed to the recipient with both hands with the information facing the receiver?
A. Denmark B. France C. England D. Japan
It is important to remember that the fundamental identity of accounting is the debit and credit recording activity where debits ________ equal credits
A) never B) seldom C) sometimes D) always
Which of the following is usually available on a companies website?
A) brokerage reports B) annual reports C) back-office reports D) red herrings
A popular cartoon channel on television ran a holiday feature on the best and worst high-tech gifts for children. In the feature, a technology expert recommended games that were developed by selected companies. If this holiday feature was jointly funded by the selected companies, it is an example of a(n)
A. mnemonic. B. event sponsorship. C. cause-related ad. D. video news release. E. image ad.