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On February 1, 2024, a company lends cash and accepts a $2,500 note receivable that offers 20% interest and is due in six months. What would the company record on August 1, 2024, when the borrower pays the correct amount owed? (Do not round intermediate calculations.) Transaction A. B. c. D. Cash Interest Revenue Notes Receivable Cash Account Title Notes Receivable Cash Interest Revenue Notes Receivable Cash Notes Receivable Debit Credit 2,500 250 2,500 2,750 2,750 2,750 2,500 250 2,500 2,750

On February 1, 2024, a company lends cash and accepts a $2,500 note receivable that offers 20% interest and is due in six months. What would the company record on August 1, 2024, when the borrower pays the correct amount owed? (Do not round intermediate calculations.) Transaction A. B. c. D. Cash Interest Revenue Notes Receivable Cash Account Title Notes Receivable Cash Interest Revenue Notes Receivable Cash Notes Receivable Debit Credit 2,500 250 2,500 2,750 2,750 2,750 2,500 250 2,500 2,750

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 10MCQ
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Multiple Choice Option A Option B Option C Option D
Transcribed Image Text:Multiple Choice Option A Option B Option C Option D
On February 1, 2024, a company lends cash and accepts a $2,500 note receivable that offers 20% interest and is due in six months. What would the company record on August 1, 2024, when the borrower pays the correct amount owed? (Do not round intermediate calculations.) Transaction A. B. c. D. Cash Interest Revenue Notes Receivable Cash Account Title Notes Receivable Cash Interest Revenue Notes Receivable Cash Notes Receivable Debit Credit 2,500 250 2,500 2,750 2,750 2,750 2,500 250 2,500 2,750
Transcribed Image Text:On February 1, 2024, a company lends cash and accepts a $2,500 note receivable that offers 20% interest and is due in six months. What would the company record on August 1, 2024, when the borrower pays the correct amount owed? (Do not round intermediate calculations.) Transaction A. B. c. D. Cash Interest Revenue Notes Receivable Cash Account Title Notes Receivable Cash Interest Revenue Notes Receivable Cash Notes Receivable Debit Credit 2,500 250 2,500 2,750 2,750 2,750 2,500 250 2,500 2,750
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