Question: A $8,000, 30-day, 12% note dated November 15 is received from a customer to replace an account receivable. The journal entry to record this event

A $8,000, 30-day, 12% note dated November 15 is received from a customer to replace an account receivable. The journal entry to record this event is

debit Accounts Receivable, $6,060; credit Notes Receivable, $6,000; Credit Interest Revenue, $60

debit Notes Receivable, $8,000; credit Accounts Receivable, $8,000

debit Cash, $8,080 credit Notes Receivable, $8,080

span style="font-size: 12pt; font-family: quot;Times New Romanquot;; color: #000000;"span style="font-size: 12pt;"debit Cash, $8,080 credit Notes Receivable, $8,080/span/span: Incorrect.

debit Accounts Receivable, $8,080; credit Notes Receivable, $8,000; Credit Interest Receivable, $80

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

A $9,000, 30-day, 12% note dated November 15 is received from a customer to replace an account receivable. The journal entry to record this event is a. debit Notes Receivable, $9,000; credit Accounts...

The following selected transactions are from King Company. Year 1 December 16 Accepted a $13,200, 60-day, 12 note in granting Jean Clark a time extension on his past-due account receivable. December...

GL0701 (Algo) - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Nguyen Company. Year 1 December 16 Accepted a $16,800, 60-day, 12% note in granting Sarah Walker a...

GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Mitchell Company, Year 1 Dec. 16 Accepted a $20,400, 60-day, 12% note in granting Kathy Perry a time...

GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Lee Company. Year 1 Dec. 16 Accepted a $13,200, 60-day, 12% note in granting Juan Perez a time extension on...

The following selected transactions are from King Company. Year 1 Dec. 16 Accepted a $13,200, 60-day, 12% note in granting Jean Clark a time extension on his past-due account receivable. 31 Made an...

Year 1 Dec. 16 Accepted a $16,800, 60-day, 12% note in granting Carolyn Collins a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the...

GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from King Company Year 1 Dec. 16 Accepted a $13,200, 60-day, 12% note in granting Jean Clark a time extension on...

Effect of Doubtful Accounts on Net Income During its first year of operations, Mack's Plumbing Supply Co. had sales of $520,000, wrote off $9,900 of accounts as uncollectible using the direct...

The inventory data for an item for Nov. are: Nov. 1 4 10 17 30 Inventory Sold Purchased Sold Purchased 20 units at $20 10 units 30 units at $24 20 units 10 units at $22 Using the perpetual system,...

An experiment was conducted to determine the extent to which the growth rate of a certain fungus could be affected by filling test tubes containing the same medium at the same temperature with...

A senior tax partner in your office has requested that you meet with Mr. Jehangir Dauwalla, a new client, to assist in preparing his personal income tax return. During your initial client meeting,...

You buy 1 share of stock at $ 7 5 . You receive following dividends: $ 2 . 2 5 - Year 1 $ 2 . 6 5 - Year 2 3 . 0 0 Year 3 You sell the stock at the end of year 3 for $ 1 1 0 . What is the IRR? What...

AbnerCorporation's bonds mature in22 years and pay11 percent interest annually. If you purchase the bonds for$1,200, what is your yield tomaturity? Your yield to maturity on the Abner bonds...

What are some of the pros and cons of undertaking a massive hiring spree in one day?

Based on a highly compressed time frame, what are some of the pre-employment activities Chipotle might have set aside?

Explain why Sheila, not Pete, should make the selection decision.