Leek Company receives a $12,000, 3-month, 5% promissory note from Rey Company in settlement of an open accounts receivable. What entry will Leek Company make upon receiving the note? Select one: a. Notes Receivable.............................................. 12,150 Accounts Receivable—Rey Company................ 12,150 b. Notes Receivable............................................................12,000 Interest Receivable......................................... 150 Accounts Receivable—Rey Company............... 12,000 Interest Revenue........................................... 150 c. Notes Receivable.................................................... 12,000 Accounts Receivable—Rey Company............ 12,000 d. Notes Receivable............................................... 12,150 Accounts Receivable—Rey Company.................... 12,000 Interest Revenue.................................... 150

Leek Company receives a $12,000, 3-month, 5% promissory note from Rey Company in settlement of an open accounts receivable. What entry will Leek Company make upon receiving the note? Select one: a. Notes Receivable.............................................. 12,150 Accounts Receivable—Rey Company................ 12,150 b. Notes Receivable............................................................12,000 Interest Receivable......................................... 150 Accounts Receivable—Rey Company............... 12,000 Interest Revenue........................................... 150 c. Notes Receivable.................................................... 12,000 Accounts Receivable—Rey Company............ 12,000 d. Notes Receivable............................................... 12,150 Accounts Receivable—Rey Company.................... 12,000 Interest Revenue.................................... 150

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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