Question: A company lends $ 1 0 , 0 0 0 to an employee who signed a 9 % , 6 - month promissory note. The

A company lends $10,000 to an employee who signed a 9%,6-month promissory note. The entry made by the company to record the establishment of the loan to the employee will include a:
Multiple Choice
debit to Accounts Receivable for $10,000.
credit to Sales for $10,000.
debit to Notes Receivable for $10,000.
credit to Notes Payable for $10,000.

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!