Ask Question
7 February, 00:20

On May 18, Rodriguez Co. issued an $84,000, 6%, 120-day note payable on an overdue account payable to Wilson Company. Assume that the fiscal year of Rodriguez ends on June 30. Which of the following relationships is true? a. Rodriguez is the creditor and credits Accounts Receivable

b. Wilson is the creditor and debits Accounts Receivable

c. Rodriguez is the borrower and debits Accounts Payable

d. Wilson is the borrower and credits Accounts Payable

+3
Answers (1)
  1. 7 February, 02:38
    0
    c. Rodriguez is the borrower and debits Accounts Payable

    Explanation:

    Rodriguez Co will:

    De-recognise the Trade Payable - Wilson Company Recognise a Financial Liability to Wilson Company

    Wilson Company will:

    Recognise an Investment or FA in Rodriguez Co De-recognise the Trade Receivable - Wilson Company
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On May 18, Rodriguez Co. issued an $84,000, 6%, 120-day note payable on an overdue account payable to Wilson Company. Assume that the ...” 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