Night Corp. receives a $4,000, 3-month, 8% note from Day Corp. in settlement of a past due accountreceivable. What entry will Night Corp. make upon receiving the note?Notes Receivable..4,080Accounts Receivable.4,080......*.Notes Receivable...4,080Accounts Receivable.Interest Revenue..4,00080......Notes Receivable..4,000Accounts Receivable.4,000Notes Receivable..4,000Interest Receivable.Accounts Receivable.Interest Revenue.804,00080......

Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Night Corp. receives a $4,000, 3-month, 8% note from Day Corp. in settlement of a past due account receivable. What entry will Night Corp. make upon receiving the note? Notes Receivable.. 4,080 Accounts Receivable. 4,080 Notes Receivable.. Accounts Receivable. Interest Revenue.. 4,080 4,000 80 .... . Notes Receivable. 4,000 4,000 Accounts Receivable. Notes Receivable. 4,000 80 ........ Interest Receivable. Accounts Receivable. Interest Revenue. 4,000 80

Night Corp. receives a $4,000, 3-month, 8% note from Day Corp. in settlement of a past due account receivable. What entry will Night Corp. make upon receiving the note? Notes Receivable.. 4,080 Accounts Receivable. 4,080 Notes Receivable.. Accounts Receivable. Interest Revenue.. 4,080 4,000 80 .... . Notes Receivable. 4,000 4,000 Accounts Receivable. Notes Receivable. 4,000 80 ........ Interest Receivable. Accounts Receivable. Interest Revenue. 4,000 80

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
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