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Paoli Pizza Bought $5,000 Worth of Merchandise from TechCom and Signed

Question 85

Multiple Choice

Paoli Pizza bought $5,000 worth of merchandise from TechCom and signed a 90-day,10% promissory note for the $5,000.TechCom's journal entry to record the sales portion of the transaction is:


A)  Accounts Receivable 5,000 Sales 5,000\begin{array}{|l|r|r|}\hline \text { Accounts Receivable } & 5,000 & \\\hline \text { Sales } & & 5,000 \\\hline\end{array}

B)  Notes Receivable 5,000 Sales 5,000\begin{array} { | c | r | r | } \hline \text { Notes Receivable } & 5,000 & \\\hline \text { Sales } & & 5,000 \\\hline\end{array}
C)  Accounts Receivable 5,125 Sales 5,125\begin{array} { | l | r | r | } \hline \text { Accounts Receivable } & 5,125 & \\\hline \text { Sales } & & 5,125 \\\hline\end{array}
D)  Notes Receivable 5,125 Sales 5,125\begin{array} { | l | r | r | } \hline \text { Notes Receivable } & 5,125 & \\\hline \text { Sales } & & 5,125 \\\hline\end{array}
E)  Notes Receivable 5,000 Interest Receivable 125 Sales 5,125\begin{array} { | l | r | r | } \hline \text { Notes Receivable } & 5,000 & \\\hline \text { Interest Receivable } & 125 & \\\hline \text { Sales } & & 5,125 \\\hline\end{array}

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