Question: Serena's Salon accepted a $500 note from a customer in exchange for services. The customer will pay back the note in one year with 8%

Serena's Salon accepted a $500 note from a customer in exchange for services. The customer will pay back the note in one year with 8% interest. What is the journal entry for the customer payment? O a. Cash $540 Notes Receivable $500 Interest Revenue $40 O b. Cash $500 Interest Receivable $40 Notes Receivable $540 O c. Cash $500 Notes Receivable $500 O d. Cash $540 Interest Expense $40 Notes Receivable $500

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!

On November 30, 2019, Davis Company had the following account balances: Debit Credit Cash $3,090 Accounts Receivable 9,900 Allowance for Doubtful Accounts $100 Inventory 17,750 Supplies 1,400 Land...

Serena's Salon accepted a $500 note from a customer in exchange for services. The customer will pay back the note in one year with 8% interest. What is the journal entry for the initial transaction?

s please use the statements above to fill in the T accounts as well as the income statement and balance sheet List of business transactions to record in a general journal Sells (Issues) $60,000 of...

Question 1 Evershine Company Limited (ECL) uses the percentage-of-receivables method and aging schedule for its accounts receivable. On 1 January 2020, the balance in the allowance for doubtful...

How to do the entry for Dec 24, entry 26, 38 and 39. 3. Financial statements and analysis [Due Tuesday, Feb. 16, at 5:00 p.m.] 23 13,000 Part A: Basic Financial Statements Ozark Dock and Lift Company...

Great Adventures Problem AP5-1 (GL) Tony and Suzie are ready to expand Great Adventures even further in 2022. Tony believes that many groups in the community (for example, Boy Scouts, church groups,...

I need to find out if I'm on the right track with this assignment and and explanation on what vertical and horizontal analysis are. I don't understand some of the questions and have marked them in...

Case Analysis 1. Compute the yield to maturity of Land'o'Toys' bonds before the purchase announcement and use it to determine the likely current bond rating. (Compare YTM to the table on p. 269)....

Supreme Companys bookkeeper prepared the bank reconciliation for May 31, 2010. The bookkeeper had the following responsibilities: All bookkeeping, the handling of cash receipts, the preparation of...

There are (3) problems total, need help solving this. Project Problem 1 Supreme Companys bookkeeper prepared the bank reconciliation for May 31, 2010. The bookkeeper had the following...

Supreme Company's bookkeeper prepared the bank reconciliation for May 31, 2010. The bookkeeper had the following responsibilities: All bookkeeping the handling of cash receipts, the preparation of...

Evaluate the following integral (a) analytically, (b) Romberg integration (&, = 0.5%), (c) the three-point Gauss quadrature formula, and (d) MATLAB integral function: 8 1=S"- -0.055x +0.86x - 4.2x...

Collar E slides toward point A with a constant relative speed of 3 m/s along rod AB which rotates counterclockwise with a constant angular velocity of 15 rad/s. At the instant shown determine the...

Wind Co . incurred organization costs of $ 6 , 0 0 0 at the beginning of its first year of operations. How should Wind treat the organization costs in its financial statements in accordance with...

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...