Question: Assuming the maker of the note defaults on May 1, 2011 Salem will record on this date. a. An account receivable in the amount of

Assuming the maker of the note defaults on May 1, 2011 Salem will record on this date.

a. An account receivable in the amount of $900,000 as well as interest expense of $27,000.

b. an account receivable of $900,000 from the maker of the note.

c. An account receivable in the amount of $900,000 as well as interest revenue of $18,000.

d. An account receivable in the amount of $927,000 as well as interest revenue of $18,000.

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