On December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. The interest of 10% has accrued for 10 months on the note. What will Crain’s financial statements report for this situation?The balance sheet will report the note receivable of $8,400.The balance sheet will report the note receivable of $8,400 and interest receivable of $700.Nothing because the business has not received the cash yet.The income statement will report a note receivable of $8,400.

A note receivable is a document which is written promise made which indicates an amount to be…

Answered: On December 31 year-end, Crain…

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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On December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. The interest of 10% has accrued for 10 months on the note. What will Crain’s financial statements report for this situation?

The balance sheet will report the note receivable of $8,400.
The balance sheet will report the note receivable of $8,400 and interest receivable of $700.
Nothing because the business has not received the cash yet.
The income statement will report a note receivable of $8,400.

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