When an interest bearing note is dishonoured at maturity and ultimate collection of the principal and interest is expected, the entry for the dishonouring-assuming no previous accrual of interest-should include:
A) a debit to Allowance for Doubtful Accounts.
B) only a credit to Notes Receivable.
C) a credit to Notes Receivable and Interest Revenue.
D) a credit to Notes Receivable and Interest Receivable.
Correct Answer:
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