On January 15, 2021, 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, 2021, would include a:

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The entry by Craig Company on January 15, 2021, would include a debit of $9,000 to Notes Receivable. This is because the note is being received by Craig Company, and therefore represents an increase in their assets (specifically, their notes receivable). The amount of the note is $9,000, which is the amount that will be recorded on the debit side of the entry. The interest of 9% ($810) will be recorded separately as interest revenue over the two months of the note's term. There is no need for a credit to accounts receivable or notes receivable, as these do not decrease as a result of this transaction.

On January 15, 2021, Craig Company Received a Two-Month, 9