On January 15 2016 Jaymes Company Received a Two-Month 4 $\begin{array}{lrr} \text { Accounts Receivable-P. Long.} &7,000\\ \text { Notes Receivable.} &&7,000\\ \text { } &\end{array}$

Short Answer

On January 15 2016 Jaymes Company received a two-month 4% $7000 note from Peter Long for the settlement of his open account. The entry by Jaymes Company on March 15 2016 if Long dishonors the note and collection is expected is: a.
$\begin{array}{lrr} \text { Accounts Receivable-P. Long.} &7,000\\ \text { Notes Receivable.} &&7,000\\ \text { } &\end{array}$

b.
$\begin{array}{lrr} \text { Accounts Receivable-P. Long. } &7,047\\ \text { Notes Receivable } &&7,000\\ \text {Interest Revenue } &&47\end{array}$

c.
$\begin{array}{lrr} \text { Accounts Receivable-P. Long.} &6,953\\ \text { Interest Lost. } &47\\ \text {Notes Receivable } &&7,000\end{array}$

d.
$\begin{array}{lrr} \text { Bad Debts Expense} &7,047\\ \text {Notes Receivable } & &7,047\\ \end{array}$