On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $12,800 face value and 7% interest. On October 30, the journal entry for the collection of the note, assuming a 360-day year, should include a Oa. debit to Notes Receivable for $240 Ob. credit to Interest Revenue for $224 Oc. credit to Notes Receivable for $263 Od. debit to Interest Receivable for $206
On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $12,800 face value and 7% interest. On October 30, the journal entry for the collection of the note, assuming a 360-day year, should include a Oa. debit to Notes Receivable for $240 Ob. credit to Interest Revenue for $224 Oc. credit to Notes Receivable for $263 Od. debit to Interest Receivable for $206
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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On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note
were $12,800 face value and 7% interest. On October 30, the journal entry for the collection of the note, assuming a 360-day year, should
include a
Oa. debit to Notes Receivable for $240
Ob. credit to Interest Revenue for $224
Oc. credit to Notes Receivable for $263
Od. debit to Interest Receivable for $206
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