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
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
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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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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