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Paper Company receives a $3,807, 3-month, 9% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note? a. Notes Receivable—Dame Company $3,807         Accounts Receivable—Dame Company   $3,807 b. Notes Receivable—Dame Company $3,893         Accounts Receivable—Dame Company   $3,807       Interest Revenue   $86 c. Notes Receivable—Dame Company $3,893         Accounts Receivable—Dame Company   $3,893 d. Notes Receivable—Dame Company $3,893         Interest Receivable   $86       Accounts Receivable—Dame Company   $3,807       Interest Receivable   $86

Paper Company receives a $3,807, 3-month, 9% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note? a. Notes Receivable—Dame Company $3,807         Accounts Receivable—Dame Company   $3,807 b. Notes Receivable—Dame Company $3,893         Accounts Receivable—Dame Company   $3,807       Interest Revenue   $86 c. Notes Receivable—Dame Company $3,893         Accounts Receivable—Dame Company   $3,893 d. Notes Receivable—Dame Company $3,893         Interest Receivable   $86       Accounts Receivable—Dame Company   $3,807       Interest Receivable   $86

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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  1. Paper Company receives a $3,807, 3-month, 9% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note?

    a.
    Notes Receivable—Dame Company $3,807  
          Accounts Receivable—Dame Company   $3,807
    b.
    Notes Receivable—Dame Company $3,893  
          Accounts Receivable—Dame Company   $3,807
          Interest Revenue   $86
    c.
    Notes Receivable—Dame Company $3,893  
          Accounts Receivable—Dame Company   $3,893
    d.
    Notes Receivable—Dame Company $3,893  
          Interest Receivable   $86
          Accounts Receivable—Dame Company   $3,807
          Interest Receivable   $86
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