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Question
A $6,000, 60-day, 12% note is not paid by the maker at maturity. The journal entry to recognize this event is
a. debit Cash, $6,120; credit Notes Receivable, $6,120
b. debit Accounts Receivable, $6,120; credit Notes Receivable, $6,000; credit Interest Receivable, $120
c. debit Notes Receivable, $6,060; credit Accounts Receivable, $6,060
d. debit Accounts Receivable, $6,120; credit Notes Receivable, $6,000; credit Interest Revenue, $120
Answer
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