Paoli Pizza bought $5,000 worth of merchandise from TechCom and signed a 90-day, 10% promissory note for the $5,000. TechCom's journal entry to record the sales portion of the transaction is:
B)$\begin{array} { | c | r | r | } \hline \text { Notes Receivable } & 5,000 & \ \hline \text { Sales } & & 5,000 \ \hline \end{array}$
C)$\begin{array} { | c | r | r | } \hline \text { Accounts Receivable } & 5,125 & \ \hline \text { Sales } & & 5,125 \ \hline \end{array}$
D)$\begin{array} { | c | r | r | } \hline \text { Notes Receivable } & 5,125 & \ \hline \text { Sales } & & 5,125 \ \hline \end{array}$
E)$\begin{array} { | l | r | r | } \hline \text { Notes Receivable } & 5,000 & \ \hline \text { Interest Receivable } & 125 & \ \hline \text { Sales } & & 5,125 \ \hline \end{array}$

Question

Paoli Pizza bought $5,000 worth of merchandise from TechCom and signed a 90-day, 10% promissory note for the $5,000. TechCom's journal entry to record the sales portion of the transaction is:
B)$\begin{array} { | c | r | r | } \hline \text { Notes Receivable } & 5,000 & \ \hline \text { Sales } & & 5,000 \ \hline \end{array}$ 
C)$\begin{array} { | c | r | r | } \hline \text { Accounts Receivable } & 5,125 & \ \hline \text { Sales } & & 5,125 \ \hline \end{array}$ 
D)$\begin{array} { | c | r | r | } \hline \text { Notes Receivable } & 5,125 & \ \hline \text { Sales } & & 5,125 \ \hline \end{array}$ 
E)$\begin{array} { | l | r | r | } \hline \text { Notes Receivable } & 5,000 & \ \hline \text { Interest Receivable } & 125 & \ \hline \text { Sales } & & 5,125 \ \hline \end{array}$

Quizplus · Accepted Answer

The Answer of Paoli Pizza bought $5,000 worth of merchandise from TechCom and signed a 90-day, 10% promissory note for the $5,000. TechCom's journal entry to record the sales portion of the transaction is:
B)$\begin{array} { | c | r | r | } \hline \text { Notes Receivable } & 5,000 & \ \hline \text { Sales } & & 5,000 \ \hline \end{array}$ 
C)$\begin{array} { | c | r | r | } \hline \text { Accounts Receivable } & 5,125 & \ \hline \text { Sales } & & 5,125 \ \hline \end{array}$ 
D)$\begin{array} { | c | r | r | } \hline \text { Notes Receivable } & 5,125 & \ \hline \text { Sales } & & 5,125 \ \hline \end{array}$ 
E)$\begin{array} { | l | r | r | } \hline \text { Notes Receivable } & 5,000 & \ \hline \text { Interest Receivable } & 125 & \ \hline \text { Sales } & & 5,125 \ \hline \end{array}$

Paoli Pizza Bought $5,000 Worth of Merchandise from TechCom and Signed