Springz Company Received a 120-Day, 9 Percent Note for $1,200

Multiple Choice

Springz Company received a 120-day, 9 percent note for $1,200, dated March 18, from Jenny, a charge customer, to satisfy his open account receivable. Which of the following journal entries records the receipt of the note in the general journal of Springz Company?

A) Debit Notes Receivable by $1,236; credit Accounts Receivable, Jenny by $1,200, Interest Income by $36
B) Debit Cash by $1,200; credit Accounts Receivable, Jenny by $1,200
C) Debit Notes Receivable by $1,200; credit Accounts Receivable, Jenny by $1,200
D) Debit Notes Receivable by $1,164; credit Accounts Receivable, Jenny by $1,164