Multiple Choice
Straight Company sold merchandise to Cross Company and received a promissory note from Cross. Straight should record the transaction as:
A) debit Notes Receivable and credit Sales for the principal amount of the note.
B) debit Notes Receivable and credit Sales for the maturity value of the note.
C) debit Accounts Receivable and credit Sales for the maturity amount of the note.
D) debit Accounts Receivable and credit Sales for the principal amount of the note.
Correct Answer:
Verified
Correct Answer:
Verified
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