Ask Question
BusinessBusiness
1 March, 10:25

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 6,000Accounts Receivable-Dame Company 6000 B. Notes Receivable 6,090Accounts Receivable-Dame Company 6090 C. Notes Receivable 6,090Accounts Receivable-Dame Company 6000 Interest Revenue 90 D. Notes Receivable 6,000Interest Revenue 90Accounts Receivable-Dame Company 6000Interest Receivable 90

+3
Answers (1)
  1. 1 March, 13:48
    0
    A. Notes Receivable 6,000 A/c Dr

    To Accounts Receivable-Dame Company 6000

    Explanation:

    Since we have to pass the journal entry of receiving the promissory note, so the journal entry would be:

    Notes Receivable 6,000 A/c Dr

    To Accounts Receivable-Dame Company 6000

    (Being note is received in exchange of accounts receivable)

    The notes receivable is an asset so it would be debited whereas account receivable is also an asset but we have to give extra time to the debtor to pay, so for that, we credited the accounts receivable account.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Paper Company receives a $6,000, 3-month, 6% promissory note from Dame Company in settlement of an open accounts receivable. What entry ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
At the beginning of the current year, the Grant Company's work in process inventory account had a balance of $30,000. During the year, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred.
Answers (1)
Money is: A. anything that can easily be used to buy goods and services. B. currency and stocks. C. paper money and coins but not checks. D. None of the answers is correct.
Answers (1)
Pollution control equipment for a pulverized coal cyclone furnace is expected to cost $190,000 two years from now and another $120,000 four years from now.
Answers (1)
The last transaction in the federal funds market occurred in 2008 because
Answers (1)
When a counteroffer is made, the offer is A - accepted B - discharged C - enforced D-terminated
Answers (1)
New Questions in Business
Matt is considering the purchase of an investment that w ill pay him $12,500 in 12 years. If Matt wants to earn a return equal to 7 percent per year (annual compounding), what is the maximum amount he should be w illing to pay for the investment
Answers (1)
Marginal analysis involves comparing the additional or extra benefit derived from consuming an additional unit of a product or service to the additional cost of consuming that unit of the product or service. A. True B. False
Answers (1)
Discount-Mart issues $10 million in bonds on January 1, 2012. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds.
Answers (1)
Available"" (as in ""measurable and available"") means 1. Available to finance expenditures of the current period 2. Subject to accrual 3. Collectible 4. Available for appropriation
Answers (1)
Which of the following is reported as a financing activity in the statement of cash flows? Multiple Choice The payment of interest on bonds payable. The receipt of dividend revenue. The acquisition of stock for the purpose of retiring it.
Answers (1)
Home » Business » 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 6,000Accounts Receivable-Dame Company 6000 B.
Sign Up Forgot Password?