On December 1, 20x1 a company borrowed P100,000 by signing a six-month note that specifies interest at an annual percentage rate of 12%. The note matures on May 31 20x2. The company prepares financial statements at the end of each calendar month. What would be the effect on the financial statements if the company fails to make the adjusting entry on December 31? * O The revenue will be overstated O The expense will be understated O The expense will be overstated The revenue will be understated
On December 1, 20x1 a company borrowed P100,000 by signing a six-month note that specifies interest at an annual percentage rate of 12%. The note matures on May 31 20x2. The company prepares financial statements at the end of each calendar month. What would be the effect on the financial statements if the company fails to make the adjusting entry on December 31? * O The revenue will be overstated O The expense will be understated O The expense will be overstated The revenue will be understated
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...
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