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Paper Company Receives a $6,000, 3-Month, 6% Promissory Note from Dame

Question 64

Multiple Choice

Paper Company receives a $6,000, 3-month, 6% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note?


A)
Notes Receivable-Dame Company 6,000\quad 6,000
Accounts Receivable-Dame Company 6,000\quad 6,000
B)
Notes Receivable-Dame Company 6,090 \quad 6,090
Accounts Receivable-Dame Company 6,090 \quad 6,090
C)
Paper Company receives a $6,000, 3-month, 6% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note? A) Notes Receivable-Dame Company \quad 6,000 Accounts Receivable-Dame Company \quad 6,000 B) Notes Receivable-Dame Company \quad 6,090 Accounts Receivable-Dame Company \quad 6,090 C) D)
D) Paper Company receives a $6,000, 3-month, 6% promissory note from Dame Company in settlement of an open accounts receivable. What entry will Paper Company make upon receiving the note? A) Notes Receivable-Dame Company \quad 6,000 Accounts Receivable-Dame Company \quad 6,000 B) Notes Receivable-Dame Company \quad 6,090 Accounts Receivable-Dame Company \quad 6,090 C) D)

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