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Question
Paper Company receives a $6,000, three-month, 6% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note?
a. Notes Receivable, Dame Company 6,000
Accounts Receivable, Dame Company 6,000
b. Notes Receivable, Dame Company 6,090
Accounts Receivable, Dame Company 6,090
c. Notes Receivable, Dame Company 6,090
Accounts Receivable, Dame Company 6,000
Interest Revenue 90
d. Notes Receivable, Dame Company 6,000
Interest Revenue 90
Accounts Receivable, Dame Company 6,000
Interest Receivable 90
Answer
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