When a company earns interest on a note receivable or on a bank account, the debit and credit are as follows: Group of answer choices Debit Interest revenue, credit Accounts receivable Debit Interest revenue, credit Interest receivable Debit Accounts receivable, credit Interest revenue Debit Interest receivable, credit Interest revenue

Q: In quickbooks, Describe the steps used to record an automatic loan payment that appears on a bank…

A: QuickBooks is an accounting software developed to record and manage the loan account, loan payments,…

Q: Identify which one of the following is a document issued by an individual to his or her bank,…

A: Instrument issued by the pay for operating the payment and receiving settlement. There are many…

Q: is the practice of selling a note receivable by the payee before the maturity date of the note. a.…

A: Discounting refers to getting a bills of exchange paid before the date of maturity. The face value…

Q: The following items will result in a difference between the balances in the bank statement and the…

A: Introduction: Bank reconciliation statement: Its a statement prepared by the customer of the bank…

Q: Sales to customers who use bank credit cards such as MasterCard and VISA are usually recorded by a…

A: Sales: It is an activity involved in selling goods or services.

Q: Arrange the following information on Bank X into its income statement. Label and place each item in…

A: Financial Statement: financial statement is an organized information about the financial position…

Q: A bank statement Oa. shows a company the financial position of the bank as of a certain date Ob. is…

A: Bank statement is a record maintained by a bank for every customer that he/she transacts with it.…

Q: The entry to record interest expense on a bank loan payable is a   a. debit to interest expense and…

A: The adjustment entries are made at the end of the year to adjust the revenues and expenses of the…

Q: Try It! For each of the following items, determine whether the item would be: a. added to the bank…

A: 11. Interest revenue earned  Is not adjusted in bank balance  They are adjusted in the books. 12.…

Q: The "principal" of a note receivable refers to: a.the amount of cash borrowed. b.the present value…

A: The principal amount of a note receivable is the amount of cash borrowed.

Q: The accounting treatment of a transfer fees by a bank is: a. An interest income b. An interest…

A: Introduction: Interest: Interest is the amount charged on the principle amount. Interest is…

Q: Journal Entry for Payee when giving note * to either the maker or a bank Debit Cash, Credit Notes…

A: Notes receivable is considered a negotiable instrument. It is a written promise to receive a certain…

Q: Explain the difference between how you would characterize bank deposits and loans as assets and…

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…

Q: a debtor and a creditor record the same note, respectively, as a: A. note receivable and note…

A: The debtor refers to the person or an entity who owes some amount from another person. The another…

Q: when a company establishes a credit line with a bank, it is the same as borrowing from the bank True…

A: Credit line is similar to taking a loan but in credit line loan is taken on a regular basis. There…

Q: What is credit history? A record of a person's borrowing and repayment activity used to calculate…

A: Credit history checks if the borrower has been responsible with the debt payments or not. It checks…

Q: Indicate whether each of the following statements is true or false. a) Loaning cash to another…

A: Cash flow from operating activities: In this part of the cash flow statement, cash is indicates the…

Q: •Pass the journal entries and •Show the discount and interest and rebate on bills discounted account…

A: (i) October 20: all 2 months fall in the year 2017, hence no rebate on bills discounted. (ii)…

Q: Which of the following is money kept by the firm with a bank in low-interest or non-interest bearing…

A: Loan is a part of financing in which a bank or institution lends money to the business in exchange…

Q: When preparing bank reconciliation, bank credits are O added to the bank statement balance O…

A: The Bank reconciliation statement explains the differences in balance as per books with the balance…

Q: The journal entry to record lending money on a note receivable is… what?

A: Journal book is the book where all the transactions of the company will be recorded in a…

Q: Which of the following is an example of a book item, an item that is found on the bank statement…

A: Bank service charge is available in the bank statement that is not records in the books yet. Cash…

Q: From a company’s point of view, which of the following statements best describes an “outstanding…

A: Outstanding check: When company issue the check to the vendor/creditors but they do not present the…

Q: Accounts receivable is the amount payable by the customer to the company for the goods delivered and…

A: Bad debts are considered to be estimated based on 2.5% of total credit sales. Therefore, the bad…

Q: A company repays its bank borrowings.  The entry to record that transaction should be Group of…

A: Borrowing means where business taken loan from outsider to be used in business and repaid later.

Q: A "receipt on account" results in a credit to: An A/P account Bank An A/R account Capital

A: Receipt on account means, cash received from previously made credit sales.

Q: Interest on bank savings accounts is calculated

A: Interest refers to the cost of money borrowed from a lender. It can be simple or compound. It is…

Q: Which account in the bank helps the customers to deposit and withdraw when they need it? a. Savings…

A: Introduction: Banks: Banks accepts deposits from customers and gives loans to who are needed. It…

Q: Interest received by the bank on behalf of the customers is: Added to cash balance Deducted from…

A: Bank reconciliation statement: The bank reconciliation statement (BRS) is prepared to reconcile the…

Q: What is the adjusting entry of Bank Reconciliation : Credit Memo- Proceed Bank Loan

A: Credit memo - proceed bank loan : A bank's credit memo is defined as the item where the bank account…

Q: A debit order of R1500 for payment of rates will appear in ____________during the bank…

A: Answer:-  Bank reconciliation:- A bank reconciliation is the process of reconciling the bank account…

Q: A note receivable is dishonoured on the maturity date. The journal entry to record the same in the…

A: A dishonored note is a note that the maker failed to pay at maturity. Thus, the payee of the note…

Q: Match each description to the appropriate term. Clear All Measures how frequently during the year…

A: Account receivable means the amount due from customer whom we sold the goods on credit. Allowance…

Q: How do each of the items in a firm’s credit policy—defined to include the credit period, the…

A: Strong credit policy indicates the effectiveness of credit management. The four components of credit…

Q: The receivable that is usually evidenced by a formal instrument of credit is a(n) Select one: a.…

A: Receivables means amount that is to be received from some other person on account of sale of goods…

Q: To record interest earned but not yet received, payee must accrued interest Debit Interest…

A: As per the accrual method of accounting, the income that is earned but not received till the end of…

Q: When a business endorses a note and transfers it to a bank, the process is called Ca discounting a…

A: Introduction: A negotiable document that is signed by the borrower and accepted by the lender is a…

Q: The accounting treatment of Discount on bill discounted is: a. A current liability b. A current…

A: The earnings which are earned but not received are the accrued revenue for the business. The…

Q: What are the three classifications of receivables? Which does your company have? Look in the notes…

A: Accounts Receivables: Accounting for accounts receivable (AR) is the amount of money owed to a…

Q: The bank statement contained an adjustment of $410 for a note receivable collected by the bank on…

A: The adjustment of $410 is collected by the bank and omitted in the cash book therefore the complete…

Q: When a company records a bank deposit, it will: O A. credit the Cash account on the company's books.…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: can you please explain the difference between Accounts Receivable, Notes Receivable and accepting…

A: Answer: The accounts receivables, notes receivables and accepting credit cards are form of the cash…

Q: A bank statement

A: Bank statement is statement received from bank. Bank statement is not invoice received from bank as…

Q: Give the journal entry for the following transaction. Received a promissory note in payment of an…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: What does an increasing collection period for accounts receivable suggest about a firm's credit…

A: The credit policy of a firm means the policies and conditions attached to lending goods and services…