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Question
On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $20,000 face value and 6% interest. On October 30, the journal entry for the collection of the note should include a
a. credit to Notes Receivable for $20,300
b. debit to Interest Receivable for $300
c. credit to Interest Revenue for $300
d. debit to Notes Receivable for $20,000
Answer
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