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Sammy Seafood Supplier Receives a $6,000, 3-Month, 12% Promissory Note 6,180\quad 6,180

Question 27

Multiple Choice

Sammy Seafood Supplier receives a $6,000, 3-month, 12% promissory note from Carp Co.in settlement of an open accounts receivable.What entry will Sammy's make upon receiving the note?


A) Notes Receivable............... 6,180\quad 6,180
\quad Accounts Receivable-Carr Company...... 6,180\quad 6,180

B) Notes Receivable.............. 6,180\quad 6,180
\quad \quad Accounts Receivable-Carr Company...... 6,000\quad 6,000
\quad \quad Interest Revenue....... 180\quad180

C) Notes Receivable.............. \quad 6,000
\quad Interest Receivable............. \quad 180
\quad Accounts Receivable-Carr Company...... 6,000\quad 6,000
\quad Interest Revenue............. \quad \quad \quad \quad \quad \quad 180

D) Notes Receivable.................... \quad 6,000
Accounts Receivable-Carr Company............ \quad 6,000

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