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 $1,000,bears interest at 6 percent for 90 days,received from a customer as an extension of his of past-due account is honored on due date.The entry that would be made to record the receipt on due date (ignoring interest) is:

A) Notes receivable 1,000
Cash 1,000
B) Accounts receivable 1,000
Cash 1,000
C) Accounts receivable 1,000
Notes receivable 1,000
D) Cash 1,000
Notes receivable 1,000