A company issues a note receivable in place of an outstanding accounts receivable balance. The note is issued February 1. The amount of the note is $10,000, the interest rate is 4% and the term is 3 months. When the note matures May 1, the note plus the interest is paid. Assuming the note replaced the accounts receivable, and payment of the note all occurred in the same fiscal year, what impact does this have on the assets on the balance sheet?

total assets increase by $10,000

no impact on assets

total assets increase by $100 

total assets increase by $10,100

Answer rating: 100% (QA)

ANSWER IS The correct answer is Total assets increase by 10000 ... View the full answer