A company isues a note receivable in place of an outstanding accounts receivable balance. The note is issued March 1. The amount of the note is $10,000, the interest rate is 4.5% and the term is 2 months. When the note matures May 1, the note plus the interest is paid. Assuming the accounts receivable replacement with the note, and the payment of the note all occurred in the same fiscal year, what impact does this have on the year's financial statements? O no overall impact on assets or profit for the year O total assets increase by $10,000 and profit increases by $75 O total assets and profits increase by $75 O total assets increase by $75 and profit decreases $10.000

A company isues a note receivable in place of an outstanding accounts receivable balance. The note is issued March 1. The amount of the note is $10,000, the interest rate is 4.5% and the term is 2 months. When the note matures May 1, the note plus the interest is paid. Assuming the accounts receivable replacement with the note, and the payment of the note all occurred in the same fiscal year, what impact does this have on the year's financial statements? O no overall impact on assets or profit for the year O total assets increase by $10,000 and profit increases by $75 O total assets and profits increase by $75 O total assets increase by $75 and profit decreases $10.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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