On March 1,Cents,Inc.lent $1,000 to an employee at a rate of 6% for 3 months.The entry to record the loan of $1,000 to its employee includes a:
A)credit to Cash of $1,000.
B)debit to Cash of $1,000.
C)credit to Notes Receivable of $1,000.
D)credit to Interest Revenue of $15.
E)debit to Interest Revenue of $15.

Question

Quizplus · Accepted Answer

The entry to establish this note receivable includes a debit to Notes Receivable (to increase that asset account).and a credit to Cash (to decrease that asset account)for $1,000.