On January 15, 2018, Craig Company received a two-month, 9%, $9,000 note from William Pentel for the settlement of his open account. The entry by Craig Company on January 15, 2018 would include a:

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When a company receives a note from a customer, it increases the Notes Receivable account with a debit entry. The amount of the note is $9,000, so the entry would be a debit of $9,000 to Notes Receivable. There is no need to credit Accounts Receivable since it has already been settled with the note. The interest earned on the note will be recorded separately.

On January 15, 2018, Craig Company Received a Two-Month, 9