On November 1, 2022 Spring Company accepted a three-month, 10% note for $10,000 from one of its customers to settle a past due account receivable. On December 31, 2022, the company made the appropriate year-end adjusting entry for interest. On February 1, 2023, the customer paid Spring Company the note and interest in full as promised. What journal entry should the company make to record the collection of cash on February 1, 2023? (Round your answers to the nearest whole dollar.) Multiple Choice Account Notes Receivable Cash Account Cash Notes Receivable Account Cash Notes Receivable Interest Receivable Interest Revenue Account Cash Notes Receivable Interest Revenue Debit Debit 10,250 Debit 11,000 10,250 Debit 10,250 Credit 11,000 Credit 10,250 Credit 10,000 167 83 Credit 10,000 250
On November 1, 2022 Spring Company accepted a three-month, 10% note for $10,000 from one of its customers to settle a past due account receivable. On December 31, 2022, the company made the appropriate year-end adjusting entry for interest. On February 1, 2023, the customer paid Spring Company the note and interest in full as promised. What journal entry should the company make to record the collection of cash on February 1, 2023? (Round your answers to the nearest whole dollar.) Multiple Choice Account Notes Receivable Cash Account Cash Notes Receivable Account Cash Notes Receivable Interest Receivable Interest Revenue Account Cash Notes Receivable Interest Revenue Debit Debit 10,250 Debit 11,000 10,250 Debit 10,250 Credit 11,000 Credit 10,250 Credit 10,000 167 83 Credit 10,000 250
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text:On November 1, 2022 Spring Company accepted a three-month, 10% note for $10,000 from one of
its customers to settle a past due account receivable.
On December 31, 2022, the company made the appropriate year-end adjusting entry for interest.
On February 1, 2023, the customer paid Spring Company the note and interest in full as promised.
What journal entry should the company make to record the collection of cash on February 1, 2023?
(Round your answers to the nearest whole dollar.)
Multiple Choice
Account
Notes Receivable
Cash
Account
Cash
Notes Receivable
Account
Cash
Notes Receivable
Interest Receivable
Interest Revenue
Account
Cash
Notes Receivable
Interest Revenue
Debit
Debit
10,250
Debit
11,000
10,250
Debit
10,250
Credit
11,000
Credit
10,250
Credit
10,000
167
83
Credit
10,000
250
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