Immediately after receiving a note from a customer, Ross discounted it at the bank and received the proceeds. Rosss entry on his books would be to __________.

Question 1 options:

	debit Cash and credit Notes Payable
	debit Cash, credit Interest Income, and credit Notes Receivable
	debit Cash, debit Interest Expense, and credit Notes Receivable
	debit Notes Receivable, credit Cash, and credit Interest Income

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Question 2 (2.5 points)

David borrows $2,000 from Matthew and gives him a promissory note. Matthew is the __________.

Question 2 options:

	payee
	payor
	maker
	drawer

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Question 3 (2.5 points)

A written promise to pay a certain sum of money to another person or company is a __________.

Question 3 options:

	Promissory Accounts Payable
	Promissory Note Payable
	Promissory Accounts Receivable
	Promissory Note Receivable

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Question 4 (2.5 points)

Morris Law Firm is borrowing $10,000 at 6% interest for one year. The $10,000 is the __________.

Question 4 options:

	proceeds
	principal
	amount of interest
	net amount