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Question
On August 1, 2013, Ace Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $123,965. The note is due in 90 days and has an interest rate of 8%. What would be the appropriate journal entry to record the receipt of cash at the maturity date?
A.
| Cash | 123,965.00 | |
| Notes Receivable | 123,965.00 |
B.
| Notes Receivable | 123,965.00 | |
| Accounts Receivable | 123,965.00 |
C.
| Notes Receivable | 123,965.00 | |
| Interest Revenue | 2,479.30 | |
| Cash | 126,444.30 |
D.
| Cash | 123,965.00 | |
| Interest Receivable | 2,479.30 | |
| Notes Receivable | 126,444.30 |
E.
| Cash | 126,444.30 | |
| Interest Revenue | 2,479.30 | |
| Notes Receivable | 123,965.00 |
Answer
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Related questions
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