On July 9, Mifflin Company receives an $8,500, 90-day, 8% note from customer Payton Summers as payment on account. What entry should be made on July 9 to record receipt of the note? Multiple Choice Debit Notes Receivable $8,670; credit Sales $8,670. Debit Notes Receivable $8,725; credit Interest Revenue $225; credit Accounts Receivable $8,500. Debit Accounts Receivable $8,500; credit Sales $8,500. Debit Notes Receivable $8,500; credit Accounts Receivable $8,500. Debit Notes Receivable $8,500; credit Sales $8,500.

Accounts Receivable - Whenever the Goods are sold on the credit, the Account which is created to…

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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 July 9, Mifflin Company receives an $8,500, 90-day, 8% note from customer Payton Summers as payment on account. What entry should be made on July 9 to record receipt of the note?

Multiple Choice

Debit Notes Receivable $8,670; credit Sales $8,670.
Debit Notes Receivable $8,725; credit Interest Revenue $225; credit Accounts Receivable $8,500.
Debit Accounts Receivable $8,500; credit Sales $8,500.
Debit Notes Receivable $8,500; credit Accounts Receivable $8,500.
Debit Notes Receivable $8,500; credit Sales $8,500.

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