On November 19, Nicholson Company receives a $21,600, 60-day, 5% note from a customer as payment on account. What adjusting entry should be made on the December 31 year-end? (Use 360 days a year.) Multiple Choice Debit Notes Receivable $54; credit Interest Revenue $54. Debit Notes Receivable $126; credit Interest Receivable $126. Debit Interest Receivable $126; credit Interest Revenue $126. Debit Interest Receivable $180; credit Interest Revenue $180. Debit Interest Revenue $180; credit Interest Receivable $180.

On November 19, Nicholson Company receives a $21,600, 60-day, 5% note from a customer as payment on account. What adjusting entry should be made on the December 31 year-end? (Use 360 days a year.) Multiple Choice Debit Notes Receivable $54; credit Interest Revenue $54. Debit Notes Receivable $126; credit Interest Receivable $126. Debit Interest Receivable $126; credit Interest Revenue $126. Debit Interest Receivable $180; credit Interest Revenue $180. Debit Interest Revenue $180; credit Interest Receivable $180.

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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