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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
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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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
Transcribed Image Text: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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