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On December 1, 2019, Xia Company accepts a $72,000, 90 day, 8% note from a customer. If Xia Company's accounting period ends on December 31, and the note is collected on March 1, 2020 which one of the following statements will be true for Xia Company? Select one: A. On March 1, 2020, they will credit interest Income for $480 B. On December 31, 2019, they will debit Interest Income for $480 C. On December 31, 2019, they will credit Interest Receivable for $480 D. On March 1, 2020, they will credit Interest Receivable for $480

On December 1, 2019, Xia Company accepts a $72,000, 90 day, 8% note from a customer. If Xia Company's accounting period ends on December 31, and the note is collected on March 1, 2020 which one of the following statements will be true for Xia Company? Select one: A. On March 1, 2020, they will credit interest Income for $480 B. On December 31, 2019, they will debit Interest Income for $480 C. On December 31, 2019, they will credit Interest Receivable for $480 D. On March 1, 2020, they will credit Interest Receivable for $480

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On December 1, 2019, Xia Company accepts a $72,000, 90 day, 8% note from a customer. If Xia Company's accounting period ends on December 31, and the note is collected on March 1, 2020 which one of the following statements will be true for Xia Company? Select one: A. On March 1, 2020, they will credit interest Income for $480 B. On December 31, 2019, they will debit Interest Income for $480 C. On December 31, 2019, they will credit Interest Receivable for $480 D. On March 1, 2020, they will credit Interest Receivable for $480
Transcribed Image Text:On December 1, 2019, Xia Company accepts a $72,000, 90 day, 8% note from a customer. If Xia Company's accounting period ends on December 31, and the note is collected on March 1, 2020 which one of the following statements will be true for Xia Company? Select one: A. On March 1, 2020, they will credit interest Income for $480 B. On December 31, 2019, they will debit Interest Income for $480 C. On December 31, 2019, they will credit Interest Receivable for $480 D. On March 1, 2020, they will credit Interest Receivable for $480
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