Doane Company receives a $7,000, 3-month, 6% promissory note from Ray Company in settlement of an open accounts receivable. What entry will Doane Company make upon receiving the note? $\begin{array}{lrr}
\text { a. Notes Receivable } & 7,035 & \
\text { Accounts Receivable-Ray Company } & & 7,035 \
\text { b. Notes Receivable } & 7,105\
\text { Accounts Receivable-Ray Company } && 7,000 \
\text { Interest Revenue } && 105\
\text { c. Notes Receivable } & 7,000\
\text { Interest Receivable } &105 \
\text { Accounts Receivable-Ray Company } && 7,000 \
\text { Interest Revenue }
& & 105 \
\text { d. Notes Receivable } & 7,000 & \
\text { Accounts Receivable-Ray Company } & & 7,000
\end{array}$

Question

Doane Company receives a $7,000, 3-month, 6% promissory note from Ray Company in settlement of an open accounts receivable. What entry will Doane Company make upon receiving the note? $\begin{array}{lrr}
\text { a. Notes Receivable } & 7,035 & \
\text { Accounts Receivable-Ray Company } &  & 7,035 \
\text { b. Notes Receivable } &  7,105\ 
\text { Accounts Receivable-Ray Company } && 7,000 \ 
\text { Interest Revenue }   && 105\
\text { c. Notes Receivable }  &   7,000\
\text { Interest Receivable } &105 \
\text { Accounts Receivable-Ray Company } && 7,000 \
\text { Interest Revenue }
  &  & 105 \
\text { d. Notes Receivable } & 7,000 &   \
\text { Accounts Receivable-Ray Company } &   & 7,000
\end{array}$

Quizplus · Accepted Answer

The Answer of Doane Company receives a $7,000, 3-month, 6% promissory note from Ray Company in settlement of an open accounts receivable. What entry will Doane Company make upon receiving the note? $\begin{array}{lrr}
\text { a. Notes Receivable } & 7,035 & \
\text { Accounts Receivable-Ray Company } &  & 7,035 \
\text { b. Notes Receivable } &  7,105\ 
\text { Accounts Receivable-Ray Company } && 7,000 \ 
\text { Interest Revenue }   && 105\
\text { c. Notes Receivable }  &   7,000\
\text { Interest Receivable } &105 \
\text { Accounts Receivable-Ray Company } && 7,000 \
\text { Interest Revenue }
  &  & 105 \
\text { d. Notes Receivable } & 7,000 &   \
\text { Accounts Receivable-Ray Company } &   & 7,000
\end{array}$

Doane Company Receives a $7,000, 3-Month, 6% Promissory Note from Ray