Multiple Choice
If a 15%,two-month note receivable is acquired from a customer in settlement of an existing account receivable of $5,000,the accounting entry for acquisition of the note will:
A) Include a debit to Notes Receivable for $5,750.
B) Include a debit to Notes Receivable for $5,062.50.
C) Include a credit to Interest Revenue for $62.50.
D) Include a debit to Notes Receivable for $5,000 and no entry for interest.
Correct Answer:

Verified
Correct Answer:
Verified
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