Plunder Inc B) $\begin{array}{|l|r|r|}\hline \text { Cash } & 2,500 & \\\hline \text { Note receivable } & & 2,500 \\\hline\end{array}$

Plunder Inc. accepted a six-month noninterest-bearing note for $2,800 on January 1, 2018. The note was accepted as payment of a delinquent receivable of $2,500. The cash collection on July 1, 2018, would be recorded as:

A) $\begin{array}{|c|r|r|}\hline \text { Discount on note receivable } & 300 & \\\hline \text { Interest revenue } & & 300 \\\hline \text { Cash } & 2,800 \\\hline \text { Note receivable } &&2,800 \\\hline\end{array}$
B) $\begin{array}{|l|r|r|}\hline \text { Cash } & 2,500 & \\\hline \text { Note receivable } & & 2,500 \\\hline\end{array}$
C) $\begin{array}{|l|r|r|}\hline \text { Cash } & 2,800 & \\\hline \text { Accounts receivable } & & 2,500 \\\hline \text { Interest revenue } & & 300 \\\hline\end{array}$
D) $\begin{array}{|l|r|r|}\hline \text { Cash } & 2,500 & \\\hline \text { Discount on note receivable } & 300 & \\\hline \text { Note receivable } & & 2,800 \\\hline\end{array}$

Correct Answer:

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