On December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. The interest of 10% has accrued for 10 months on the note. What will Crain’s financial statements report for this situation? The balance sheet will report the note receivable of $8,400. The balance sheet will report the note receivable of $8,400 and interest receivable of $700. Nothing because the business has not received the cash yet. The income statement will report a note receivable of $8,400.
On December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. The interest of 10% has accrued for 10 months on the note. What will Crain’s financial statements report for this situation? The balance sheet will report the note receivable of $8,400. The balance sheet will report the note receivable of $8,400 and interest receivable of $700. Nothing because the business has not received the cash yet. The income statement will report a note receivable of $8,400.
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 December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. The interest of 10% has accrued for 10 months on the note. What will Crain’s financial statements report for this situation?
- The balance sheet will report the note receivable of $8,400.
- The balance sheet will report the note receivable of $8,400 and interest receivable of $700.
- Nothing because the business has not received the cash yet.
- The income statement will report a note receivable of $8,400.
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