On November 19, Nicholson Company receives a $21,600, 60-day, 5% note from a customer as payment on account. What adjusting entry should be made on the December 31 year-end? (Use 360 days a year.) Multiple Choice Debit Notes Receivable $54; credit Interest Revenue $54. Debit Notes Receivable $126; credit Interest Receivable $126. Debit Interest Receivable $126; credit Interest Revenue $126. Debit Interest Receivable $180; credit Interest Revenue $180. Debit Interest Revenue $180; credit Interest Receivable $180.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On November 19, Nicholson Company receives a $21,600, 60-day, 5% note from a customer as payment on account. What adjusting entry should be made on the December 31 year-end? (Use 360 days a year.)
Multiple Choice
Debit Notes Receivable $54; credit Interest Revenue $54.
Debit Notes Receivable $126; credit Interest Receivable $126.
Debit Interest Receivable $126; credit Interest Revenue $126.
Debit Interest Receivable $180; credit Interest Revenue $180.
Debit Interest Revenue $180; credit Interest Receivable $180.
Transcribed Image Text:On November 19, Nicholson Company receives a $21,600, 60-day, 5% note from a customer as payment on account. What adjusting entry should be made on the December 31 year-end? (Use 360 days a year.) Multiple Choice Debit Notes Receivable $54; credit Interest Revenue $54. Debit Notes Receivable $126; credit Interest Receivable $126. Debit Interest Receivable $126; credit Interest Revenue $126. Debit Interest Receivable $180; credit Interest Revenue $180. Debit Interest Revenue $180; credit Interest Receivable $180.
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