Multiple Choice
Music World sold $7,800 in electronic components to Jax Recording Studio. Jax signed a 60-day, 8% promissory note for $7,800. Music World's journal entry to record the collection on the maturity date is:
A) Debit Cash $7,800; credit Accounts Receivable $7,800
B) Debit Accounts Receivable $7,904; credit Notes Receivable $7,800; credit Interest Receivable $104
C) Debit Notes Receivable $7,800; credit Cash $7,904; credit Interest Revenue $104
D) Debit Cash $7,904; credit Notes Receivable $7,800; credit Interest Revenue $104
E) Debit Cash $7,904; credit Notes Receivable $7,904
Correct Answer:
Verified
Correct Answer:
Verified
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