QUESTION 20Gambit Stores accepts from Leonard Co. a $3,400, 90-day, 6% note dated May 10 insettlement of Leonard's overdue open account. The note matures on August 8. Which of thefollowing statement is correct?O Note receivable is a liability account.Interest payable at maturity date is $51Note receivable has a normal credit balanceThe journal entry that Gambit makes at the maturity date, assuming Leonard pays thenote and interest in full at that time:Notes Receivable3,400Interest Revenue51Cash3,451

Notes receivable are promissory notes and are negotiable instruments. In this one party agrees to…

QUESTION 20 Gambit Stores accepts from Leonard Co. a $3,400, 90-day, 6% note dated May 10 in settlement of Leonard's overdue open account. The note matures on August 8. Which of the following statement is correct? O Note receivable is a liability account. O Interest payable at maturity date is $51 Note receivable has a normal credit balance The journal entry that Gambit makes at the maturity date, assuming Leonard pays the note and interest in full at that time: Notes Receivable 3,400 Interest Revenue 51 Cash 3,451

QUESTION 20 Gambit Stores accepts from Leonard Co. a $3,400, 90-day, 6% note dated May 10 in settlement of Leonard's overdue open account. The note matures on August 8. Which of the following statement is correct? O Note receivable is a liability account. O Interest payable at maturity date is $51 Note receivable has a normal credit balance The journal entry that Gambit makes at the maturity date, assuming Leonard pays the note and interest in full at that time: Notes Receivable 3,400 Interest Revenue 51 Cash 3,451

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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