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On June 1, 2009, Jensen Company Acquired an 8%, Ten-Month

Question 174

Multiple Choice

On June 1, 2009, Jensen Company acquired an 8%, ten-month note receivable from a customer in settlement of an existing account receivable of $130,000. Interest and principal are due at maturity.
-Refer to the above data. Jensen's entry to record the collection of this note at maturity includes a:


A) Credit to Accrued Interest Receivable of $6,067.
B) Credit to Interest Revenue of $6,067.
C) Credit to Interest Receivable of $2,600.
D) Credit to Notes Receivable of $140,400.

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