On November 1, Orpheum Company accepted a $10,000, 90-day, 8% note from a customer settle an account.

What entry should be made on the November 1 to record the note acceptance?

A - Debit Note Receivable $10,000; credit Cash $10,000.

B - Debit Note Receivable $10,000; credit Accounts Receivable $10,000.

C - Debit Note Receivable $10,000; credit Sales $10,000.

D - Debit Cash $10,000; credit Sales $10,000.

E - Debit Sales $10,000; credit Accounts Receivable $10,000.

Question

Business

Humberto Lucas

4 July, 03:36

On November 1, Orpheum Company accepted a $10,000, 90-day, 8% note from a customer settle an account.

What entry should be made on the November 1 to record the note acceptance?

A - Debit Note Receivable $10,000; credit Cash $10,000.

B - Debit Note Receivable $10,000; credit Accounts Receivable $10,000.

C - Debit Note Receivable $10,000; credit Sales $10,000.

D - Debit Cash $10,000; credit Sales $10,000.

E - Debit Sales $10,000; credit Accounts Receivable $10,000.

+1

Answers (1)

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Pepper · Answer 1

B - Debit Note Receivable $10,000; credit Accounts Receivable $10,000.

Explanation:

The following Journal entry is to recorded by the Orpheum company on November 1 in its accounts when it receives the note receivable from the credit customer to settle an account:

Debit Credit

Note Receivable $10,000

Accounts Receivable $10,000

Based on the above journal entry, the answer shall be B - Debit Note Receivable $10,000; credit Accounts Receivable $10,000.