Cheung Ltd Has an Account Receivable for $12 000 from R.Morris

Multiple Choice

Cheung Ltd has an account receivable for $12 000 from R.Morris that is overdue.Morris requests a 60-day extension of the payment date and Cheung Ltd agrees by accepting a fixed 60-day,12% promissory note in exchange for the accounts receivable.Cheung Ltd makes which entry to record the collection of the promissory note from R.Morris including interest?

A) Debit Cash $12 236,71,debit Unearned Interest $236.71; credit Bills Receivable $12 236.71,credit Interest Revenue $236.71
B) Debit Cash $12 236.71; credit Accounts Receivable $12 236.71
C) Debit Cash $12 236.71; credit Bills Receivable $12 236.71
D) Debit Cash $12 236,71; credit Bills Receivable $12 000,credit Interest Revenue $236.71