On November 1,Orpheum Company accepted a $10,000,90-day,8% note from a customer settle an account.What entry should be made on the November 1 to record the note acceptance?
A)Debit Note Receivable $10,000;credit Cash $10,000.
B)Debit Note Receivable $10,000;credit Accounts Receivable $10,000.
C)Debit Note Receivable $10,000;credit Sales $10,000.
D)Debit Cash $10,000;credit Sales $10,000.
E)Debit Sales $10,000;credit Accounts Receivable $10,000.

Question

Quizplus · Accepted Answer

When a company accepts a note receivable, it records the note as an asset (debit to Note Receivable) and credits the account that was previously receivable (credit to Accounts Receivable).

On November 1,Orpheum Company Accepted a $10,000,90-Day,8% Note from a Customer