Assume That on December 1,a Note Which Has a Face

Multiple Choice

Assume that on December 1,a note which has a face value of $18,000,bears interest at 10 percent for 90 days,received from a customer as an extension of his past-due account is dishonored.The entry that would be made to record the dishonor (ignoring interest) is:

A) Notes receivable 18,000
Cash 18,000
B) Accounts receivable 18,000
Cash 18,000
C) Accounts receivable 18,000
Notes receivable 18,000
D) Cash 18,000
Accounts Receivable 18,000