Dry Corporation cannot pay off its account with Bone Corporation on a timely basis. Bone Corporation issues a $2,000, 3-month, 12% promissory note to Dry Corporation in settlement of an open accounts receivable.
What entry will Bone Corporation make upon issuance?
A) Option A
B) Option B
C) Option C
D) Option D

Question

Dry Corporation cannot pay off its account with Bone Corporation on a timely basis. Bone Corporation issues a $2,000, 3-month, 12% promissory note to Dry Corporation in settlement of an open accounts receivable.
What entry will Bone Corporation make upon issuance? 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Quizplus · Accepted Answer

The Answer of Dry Corporation cannot pay off its account with Bone Corporation on a timely basis. Bone Corporation issues a $2,000, 3-month, 12% promissory note to Dry Corporation in settlement of an open accounts receivable.
What entry will Bone Corporation make upon issuance? 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Dry Corporation Cannot Pay Off Its Account with Bone Corporation