Valley Spa purchased $8,000 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 12% promissory note for $8,000. If the note isdishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.)Multiple ChoiceDebit Accounts Receivable $8,160; debit Bad Debt Expense $160; credit Notes Recelveble $8,000Debit Bad Debt Expense $8,160; credit.Accounts Recelvable $8,160.Debit Bad Debt Expense $8,000; credit Notes Receiveble $8,000.Debit Accounts Receivable-Valley Spa $8,000; crecit Notes Receivable $8,000.Debit Accounts Receivable-Valley Spe $8.160, credit interest Revenue $160, credit Notes Recevable $8,000Prey10 of 10

Account receivables are considered negotiable instruments. It is classified in the balance sheet…

Valley Spa purchased $8,000 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 12% promissory note for $8,000. If the note is dishonored, but Tubman itends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.) Multiple Choice Debit Accounts Receivable $8,160; debit Bad Debt Expense $160; credit Notes Receivable $8,000 Debit Bad Debt Expense $8,160: credit Accounts Recelvable $8,160. Debit Bad Debt Expense $8,000; credit Notes Receiveble $8,000. Debit Accounts Receivable-Valey Spa $8,000; crecit Notes Recevable $8,000. Debit Accounts Receivable-Valley Spe $8,160, credit Interest Revenue $160, crecit Notes Recelvable $8,000

Valley Spa purchased $8,000 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 12% promissory note for $8,000. If the note is dishonored, but Tubman itends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.) Multiple Choice Debit Accounts Receivable $8,160; debit Bad Debt Expense $160; credit Notes Receivable $8,000 Debit Bad Debt Expense $8,160: credit Accounts Recelvable $8,160. Debit Bad Debt Expense $8,000; credit Notes Receiveble $8,000. Debit Accounts Receivable-Valey Spa $8,000; crecit Notes Recevable $8,000. Debit Accounts Receivable-Valley Spe $8,160, credit Interest Revenue $160, crecit Notes Recelvable $8,000

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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