On January 1, Orange Corp. accepted a one-year note for $7,000 at 4% from one of its customers. When the note matured on December 31, the customer was unable to pay, and the company treated it as a dishonored note. The journal entry would be: A. Cash 7,280 Note Receivable Interest Revenue B. Accounts Receivable Note Receivable Interest Revenue C. Bad Debts Expense Notes Receivable Interest Revenue D. Accounts Receivable Notes Receivable 7,000 280 7,280 7,000 280 7,280 7,000 280 7,280 7,280

On January 1, Orange Corp. accepted a one-year note for $7,000 at 4% from one of its customers. When the note matured on December 31, the customer was unable to pay, and the company treated it as a dishonored note. The journal entry would be: A. Cash 7,280 Note Receivable Interest Revenue B. Accounts Receivable Note Receivable Interest Revenue C. Bad Debts Expense Notes Receivable Interest Revenue D. Accounts Receivable Notes Receivable 7,000 280 7,280 7,000 280 7,280 7,000 280 7,280 7,280

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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