Uniform Supply accepted a $7,200, 90-day, 7% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on January 15 of the next year when the note is paid? (Assume reversing entries are not made.). (Use 360 days a year.) A) Debit Cash $7,326; credit Interest Revenue $21; credit Interest Receivable $105; credit Notes Receivable $7,200. B) Debit Cash $7,326; credit Interest Revenue $105; credit Interest Receivable $21; credit Notes Receivable $7,200. C) Debit Notes Receivable $7,200; debit Interest Receivable $126; credit Sales $7,326. D) Debit Cash $7,326; credit Notes Receivable $7,326. E) Debit Cash $7,326; credit Interest Revenue $126; credit Notes Receivable $7,200.
Uniform Supply accepted a $7,200, 90-day, 7% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on January 15 of the next year when the note is paid? (Assume reversing entries are not made.). (Use 360 days a year.) A) Debit Cash $7,326; credit Interest Revenue $21; credit Interest Receivable $105; credit Notes Receivable $7,200. B) Debit Cash $7,326; credit Interest Revenue $105; credit Interest Receivable $21; credit Notes Receivable $7,200. C) Debit Notes Receivable $7,200; debit Interest Receivable $126; credit Sales $7,326. D) Debit Cash $7,326; credit Notes Receivable $7,326. E) Debit Cash $7,326; credit Interest Revenue $126; credit Notes Receivable $7,200.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Uniform Supply accepted a $7,200, 90-day, 7% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on January 15 of the next year when the note is paid? (Assume reversing entries are not made.). (Use 360 days a year.)
A) Debit Cash $7,326; credit Interest Revenue $21; credit Interest Receivable $105; credit Notes Receivable $7,200.
C) Debit Notes Receivable $7,200; debit Interest Receivable $126; credit Sales $7,326.
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