The journal entry to record a note received from a customer to apply on account is
A) debit Notes Receivable; credit Accounts Receivable
B) debit Accounts Receivable; credit Notes Receivable
C) debit Cash; credit Notes Receivable
D) debit Notes Receivable; credit Notes Payable

Question

Quizplus · Accepted Answer

When a note receivable is received from a customer to apply on account, the Notes Receivable account is debited and the Accounts Receivable account is credited.

The Journal Entry to Record a Note Received from a Customer