11 On September 30, 2022 Fabric Company accepted a six-month, 10% note for $16,000 from one of itscustomers, Irina Rivera, to settle a past due account receivable.What journal entry should the company make to record its acceptance of the note on September 30,2022?Multiple ChoiceAccountNotes ReceivableService RevenueAccountNotes ReceivableAccounts ReceivableAccountAccounts ReceivableNotes ReceivableAccountNotes ReceivableAccounts ReceivableInterest RevenueDebit16,000Debit16,000Debit16,000Debit17,600Credit16,000Credit16,000Credit16,000Credit16,0001,600

The correct answer is: (B) Debit Notes receivable by $16,000 Credit Accounts receivables by $16,000

On September 30, 2022 Fabric Company accepted a six-month, 10% note for $16,000 from one of its customers, Irina Rivera, to settle a past due account receivable. What journal entry should the company make to record its acceptance of the note on September 30, 2022?

On September 30, 2022 Fabric Company accepted a six-month, 10% note for $16,000 from one of its customers, Irina Rivera, to settle a past due account receivable. What journal entry should the company make to record its acceptance of the note on September 30, 2022?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.7E: Notes Receivable On September 1, 2016, Dougherty Corp. accepted a six-month, 7%, $45,000...

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Question

On September 30, 2022 Fabric Company accepted a six-month, 10% note for $16,000 from one of its
customers, Irina Rivera, to settle a past due account receivable.
What journal entry should the company make to record its acceptance of the note on September 30,
2022?
Multiple Choice
Account
Notes Receivable
Service Revenue
Account
Notes Receivable
Accounts Receivable
Account
Accounts Receivable
Notes Receivable
Account
Notes Receivable
Accounts Receivable
Interest Revenue
Debit
16,000
Debit
16,000
Debit
16,000
Debit
17,600
Credit
16,000
Credit
16,000
Credit
16,000
Credit
16,000
1,600

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