Cairo Co. accepted a $5,000, 12%; 90-day note dated December 16, from Alexandria Co

as in exchange for its past-due account receivable; Make the necessary general journal

entries for Cairo Co. on December 16 and on the maturity date, assuming that the note

was dishonored:

21. What is the due date?

22. T/F The entry would be made on December 31 would be a debit to notes

receivable and credit to accounts receivable for $5 ,000.

23. Which of the following is correct? The entry to record the note on the due date is:

a. Debit NR and credit sales for $5,000

b. Debit cash 5,150, credit interest revenue 125, credit interest receivable 25, and credit

note receivable 5000

c. Debit accounts receivable 5,150, credit interest revenue 125, credit interest receivable

25, and credit note receivable 5,000.

d. Debit cash 5,000, debit interest receivable 150, credit interest revenue 150, and credit

note receivable 5000.