On November 1, 2019, Chocolate Company accepted a 3-month note receivable as payment for services provided to Brownie Company. The face value was $18,000, and had a stated 6% annual rate of interest. Chocolate Company closed its books on December 31, 2019.
On February 1, 2020, the journal entry to record the collection of the note should include a credit to:

Question

Quizplus · Accepted Answer

To accrue interest income on the note from Brownie Company
 11ee7640_e1d4_d3b3_90da_9125f7e1e13c_TBCB1007_00 ($18,000 × 0.06 × 2/12 = $180).
Received payment of principal and interest from Brownie Company
 11ee7640_e1d4_d3b4_90da_a143a0a20968_TBCB1007_00 ($18,000 × 0.06 × 1/12= $90).

On November 1, 2019, Chocolate Company Accepted a 3-Month Note