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A Buyer Pays a Note in Full on Its Maturity

Question 109

Multiple Choice

A buyer pays a note in full on its maturity date. The buyer would record a:


A) debit to Cash; credit to Interest Income; credit to Notes Receivable.
B) debit to Interest Expense; credit to Cash; credit to Notes Payable.
C) debit to Notes Receivable; credit to Cash; credit to Interest Income.
D) debit to Interest Expense; debit to Notes Payable; credit to Cash.

Correct Answer:

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