Korah Corporation signed a three-month, zero-interest-bearing $152,205 note on November 1, 2021 for the purchase of $150,000 of inventory. The adjusting entry made at December 31, 2021 will include a Select one: а. debit to Interest Expense for $1,470. b. credit to Note Payable for $735. С. credit to Interest Expense for $1,470. d. debit to Note Payable for $735.
Korah Corporation signed a three-month, zero-interest-bearing $152,205 note on November 1, 2021 for the purchase of $150,000 of inventory. The adjusting entry made at December 31, 2021 will include a Select one: а. debit to Interest Expense for $1,470. b. credit to Note Payable for $735. С. credit to Interest Expense for $1,470. d. debit to Note Payable for $735.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....
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![Korah Corporation signed a three-month, zero-interest-bearing $152,205 note on
November 1, 2021 for the purchase of $150,000 of inventory. The adjusting entry made
at December 31, 2021 will include a
Select one:
а.
debit to Interest Expense for $1,470.
O b. credit to Note Payable for $735.
O c. credit to Interest Expense for $1,470.
O d. debit to Note Payable for $735.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2abd1cdc-ee4f-4da0-a2ac-96a52c2f0c72%2F00840664-38f1-44ce-ab0e-2cb2ecc77a60%2Fx3w4qn_processed.png&w=3840&q=75)
Transcribed Image Text:Korah Corporation signed a three-month, zero-interest-bearing $152,205 note on
November 1, 2021 for the purchase of $150,000 of inventory. The adjusting entry made
at December 31, 2021 will include a
Select one:
а.
debit to Interest Expense for $1,470.
O b. credit to Note Payable for $735.
O c. credit to Interest Expense for $1,470.
O d. debit to Note Payable for $735.
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