Multiple Choice
Teller purchased merchandise from TechCom on October 17 of the current year and TechCom accepted Teller's $4,800, 90-day, 10% note. What entry should TechCom make on December 31, to record the accrued interest on the note?
A) Debit Cash $20; credit Notes Receivable $20.
B) Debit Cash $100; credit Notes Receivable $100.
C) Debit Interest Receivable $20; credit Interest Revenue $20.
D) Debit Interest Receivable $100; credit Interest Revenue $100.
E) Debit Cash $120; credit Interest Revenue $100; credit Interest Receivable $20.
Correct Answer:
Verified
Correct Answer:
Verified
Q16: ABC Co. sold $80,000 of accounts receivable
Q17: Loma Company estimates uncollectible accounts using the
Q18: The account receivable turnover measures:<br>A) How long
Q19: If a customer owes interest on accounts
Q20: The formula for computing interest on a
Q23: What is the amount of interest that
Q24: Tepsi's accounts receivable turnover was 9.9 for
Q26: Companies follow both the matching principle and
Q45: The accounts receivable turnover is calculated by
Q171: The advantage of the allowance method of