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Giorgio Italian Market Bought $4,000 Worth of Merchandise from Food

Question 140

Multiple Choice

Giorgio Italian Market bought $4,000 worth of merchandise from Food Suppliers and signed a 90-day,6% promissory note for the $4,000.Food Supplier's journal entry to record the collection on the maturity date is: (Use 360 days a year.)


A) Debit Cash $4,060; credit Notes Receivable $4,060
B) Debit Notes Receivable $4,000; credit Cash $4,000
C) Debit Cash $4,000; debit Interest Receivable $60; credit Sales $4,060
D) Debit Notes Receivable $4,060; credit Sales $4,060
E) Debit Cash $4,060; credit Interest Revenue $60; credit Notes Receivable $4,000

Correct Answer:

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