Paper Company receives a $3,807, 3-month, 9% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note? a. Notes Receivable—Dame Company $3,807         Accounts Receivable—Dame Company   $3,807 b. Notes Receivable—Dame Company $3,893         Accounts Receivable—Dame Company   $3,807       Interest Revenue   $86 c. Notes Receivable—Dame Company $3,893         Accounts Receivable—Dame Company   $3,893 d. Notes Receivable—Dame Company $3,893         Interest Receivable   $86       Accounts Receivable—Dame Company   $3,807       Interest Receivable   $86

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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  1. Paper Company receives a $3,807, 3-month, 9% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note?

    a.
    Notes Receivable—Dame Company $3,807  
          Accounts Receivable—Dame Company   $3,807
    b.
    Notes Receivable—Dame Company $3,893  
          Accounts Receivable—Dame Company   $3,807
          Interest Revenue   $86
    c.
    Notes Receivable—Dame Company $3,893  
          Accounts Receivable—Dame Company   $3,893
    d.
    Notes Receivable—Dame Company $3,893  
          Interest Receivable   $86
          Accounts Receivable—Dame Company   $3,807
          Interest Receivable   $86
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