On August 9, Pierce Company receives a $8,500, 90-day, 8% note from customer Eric Simms as payment on his account. What entry should be made on August 9 to record receipt of the note?
A) Debit Accounts Receivable $8,500; credit Sales $8,500.
B) Debit Notes Receivable $8,670; credit Sales $8,670.
C) Debit Notes Receivable $8,500; credit Accounts Receivable $8,500.
D) Debit Notes Receivable $8,500; credit Sales $8,500.
E) Debit Notes Receivable $8,725; credit Interest Revenue $225; credit Accounts Receivable $8,500.
Correct Answer:
Verified
Q117: On November 19, Hayes Company receives a
Q118: How are the direct write-off method and
Q119: What is the maturity date of a
Q121: Cairo Co. uses the allowance method of
Q122: A company had the following items and
Q123: The following series of transactions occurred during
Q124: Each December 31, Davis Company ages its
Q125: A company has the following unadjusted account
Q147: Define a note receivable and explain how
Q162: Explain the difference between honoring and dishonoring
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents