Rosen Company receives a $5,000, 3-month, 6% promissory note from Bay Company in settlement of an open accounts receivable. What entry will Rosen Company make upon receiving the note? $\begin{array}{lrr}
\text { a. Notes Receivable } & 5,075 & \
\text { Accounts Receivable-Bay Company } & & 5,075 \
\text { b. Notes Receivable } & 5,075\
\text { Accounts Receivable-Bay Company } && 5,000 \
\text { Interest Revenue } && 75\
\text { c. Notes Receivable } & 5,000\
\text { Interest Receivable } &75 \
\text { Accounts Receivable-Bay Company } &&5,000 \
\text { Interest Revenue }
& & 75 \
\text { d. Notes Receivable } & 5,000 & \
\text { Accounts Receivable-Bay Company } & & 5,000
\end{array}$

Question

Rosen Company receives a $5,000, 3-month, 6% promissory note from Bay Company in settlement of an open accounts receivable. What entry will Rosen Company make upon receiving the note? $\begin{array}{lrr}
\text { a. Notes Receivable } & 5,075 & \
\text { Accounts Receivable-Bay Company } &  & 5,075 \
\text { b. Notes Receivable } &  5,075\ 
\text { Accounts Receivable-Bay Company } && 5,000 \ 
\text { Interest Revenue }   && 75\
\text { c. Notes Receivable }  &   5,000\
\text { Interest Receivable } &75 \
\text { Accounts Receivable-Bay Company } &&5,000 \
\text { Interest Revenue }
  &  & 75 \
\text { d. Notes Receivable } & 5,000 &   \
\text { Accounts Receivable-Bay Company } &   & 5,000
\end{array}$

Quizplus · Accepted Answer

The Answer of Rosen Company receives a $5,000, 3-month, 6% promissory note from Bay Company in settlement of an open accounts receivable. What entry will Rosen Company make upon receiving the note? $\begin{array}{lrr}
\text { a. Notes Receivable } & 5,075 & \
\text { Accounts Receivable-Bay Company } &  & 5,075 \
\text { b. Notes Receivable } &  5,075\ 
\text { Accounts Receivable-Bay Company } && 5,000 \ 
\text { Interest Revenue }   && 75\
\text { c. Notes Receivable }  &   5,000\
\text { Interest Receivable } &75 \
\text { Accounts Receivable-Bay Company } &&5,000 \
\text { Interest Revenue }
  &  & 75 \
\text { d. Notes Receivable } & 5,000 &   \
\text { Accounts Receivable-Bay Company } &   & 5,000
\end{array}$

Rosen Company Receives a $5,000, 3-Month, 6% Promissory Note from Bay