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Question
On November 15, 2013, Betty Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $138,460. The note is due in 90 days and has an interest rate of 7.5%. What is the appropriate journal entry to record at maturity?
A.
| Cash | 138,460.00 | |
| Notes Receivable | 138,460.00 |
B.
| Notes Receivable | 138,460.00 | |
| Accounts Receivable | 138,460.00 |
C.
| Notes Receivable | 138,460.00 | |
| Interest Revenue | 2,596.13 | |
| Cash | 141,056.13 |
D.
| Cash | 138,460.00 | |
| Interest Receivable | 1,298.06 | |
| Notes Receivable | 139,758.06 |
E.
| Cash | 141,056.12 | |
| Interest Revenue | 1,298.06 | |
| Interest Receivable | 1,298.06 | |
| Notes Receivable | 138,460.00 |
Answer
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Related questions
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