Comfort Shoes received a promissory note from a customer on April 1, 2014.The face amount of the note is $2,000; the terms are 12 months and 8% annual interest.At the maturity date, the customer pays for the note and interest.Comfort Shoes made the proper adjustment at the end of December for interest.The effect of recognizing the transaction on the maturity date is

Question

Quizplus · Accepted Answer

The note is paid off at maturity, so Notes Receivable decreases as the note is settled.

Comfort Shoes Received a Promissory Note from a Customer on April