7. Teller purchased merchandise from TechCom on October 17 of the current year. TechCom accepted Teller's $4,800, 90-day, 10% note as payment. What entry should TechCom make on January 15 of the next year when the note is paid? (A 360 day bank year is assumed.) A) Notes Receivable Interest Receivable Sales B) Cash C) Cash D) Cash E) Cash Interest Revenue Interest Receivable Notes Receivable Interest Revenue Interest Receivable Notes Receivable Notes Receivable Interest Revenue Notes Receivable 4800 120 4920 4920 4920 4920 4920 20 100 4800 100 20 4800 4920 120 4800
7. Teller purchased merchandise from TechCom on October 17 of the current year. TechCom accepted Teller's $4,800, 90-day, 10% note as payment. What entry should TechCom make on January 15 of the next year when the note is paid? (A 360 day bank year is assumed.) A) Notes Receivable Interest Receivable Sales B) Cash C) Cash D) Cash E) Cash Interest Revenue Interest Receivable Notes Receivable Interest Revenue Interest Receivable Notes Receivable Notes Receivable Interest Revenue Notes Receivable 4800 120 4920 4920 4920 4920 4920 20 100 4800 100 20 4800 4920 120 4800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:7. Teller purchased merchandise from TechCom on October 17 of the current year. TechCom accepted
Teller's $4,800, 90-day, 10 % note as payment. What entry should TechCom make on January 15
of the next year when the note is paid? (A 360 day bank year is assumed.)
A) Notes Receivable
Interest Receivable
Sales
B) Cash
C) Cash
D) Cash
E) Cash
Interest Revenue
Interest Receivable
Notes Receivable
Interest Revenue
Interest Receivable
Notes Receivable
Notes Receivable
Interest Revenue
Notes Receivable
4800
120
4920
4920
4920
4920
4920
20
100
4800
100
20
4800
4920
120
4800
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