Paper Company receives a $6,000, 3-month, 6% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note?
A) Notes Receivable 6,000 Accounts Receivable-Dame Company 6,000
B) Notes Receivable 6,090 Accounts Receivable-Dame Company 6,090
C) Notes Receivable 6,090 Accounts Receivable-Dame Company 6,000
Interest Revenue 90
D) Notes Receivable 6,000 Interest Revenue 90
Accounts Receivable-Dame Company 6,000
Interest Receivable 90
Correct Answer:
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