Multiple Choice
On July 9, Mifflin Company receives a $8,500, 90-day, 8% note from overdue customer Payton Summers as payment on account. What entry should be made on the maturity date assuming the maker pays in full?
A) Debit Notes Receivable $8,500; debit Interest Receivable $170; credit Sales $8,670.
B) Debit Cash $8,670; credit Interest Revenue $170; credit Notes Receivable $8,500.
C) Debit Cash $8,628; credit Interest Revenue $128; credit Notes Receivable $8,500.
D) Debit Cash $8,613; credit Interest Revenue $113; credit Notes Receivable $8,500.
E) Debit Cash $8 500; credit Notes Receivable $8,500.
Correct Answer:
Verified
Correct Answer:
Verified
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