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On February 1, 2024, a company lends cash and accepts a $2,500 note receivable that offers 20% interest and is due in six months. What would the company record on August 1, 2024, when the borrower pays the correct amount owed? (Do not round intermediate calculations.) Transaction A. B. c. D. Cash Interest Revenue Notes Receivable Cash Account Title Notes Receivable Cash Interest Revenue Notes Receivable Cash Notes Receivable Debit Credit 2,500 250 2,500 2,750 2,750 2,750 2,500 250 2,500 2,750

On February 1, 2024, a company lends cash and accepts a $2,500 note receivable that offers 20% interest and is due in six months. What would the company record on August 1, 2024, when the borrower pays the correct amount owed? (Do not round intermediate calculations.) Transaction A. B. c. D. Cash Interest Revenue Notes Receivable Cash Account Title Notes Receivable Cash Interest Revenue Notes Receivable Cash Notes Receivable Debit Credit 2,500 250 2,500 2,750 2,750 2,750 2,500 250 2,500 2,750

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Multiple Choice Option A Option B Option C Option D
Transcribed Image Text:Multiple Choice Option A Option B Option C Option D
On February 1, 2024, a company lends cash and accepts a $2,500 note receivable that offers 20% interest and is due in six months. What would the company record on August 1, 2024, when the borrower pays the correct amount owed? (Do not round intermediate calculations.) Transaction A. B. c. D. Cash Interest Revenue Notes Receivable Cash Account Title Notes Receivable Cash Interest Revenue Notes Receivable Cash Notes Receivable Debit Credit 2,500 250 2,500 2,750 2,750 2,750 2,500 250 2,500 2,750
Transcribed Image Text:On February 1, 2024, a company lends cash and accepts a $2,500 note receivable that offers 20% interest and is due in six months. What would the company record on August 1, 2024, when the borrower pays the correct amount owed? (Do not round intermediate calculations.) Transaction A. B. c. D. Cash Interest Revenue Notes Receivable Cash Account Title Notes Receivable Cash Interest Revenue Notes Receivable Cash Notes Receivable Debit Credit 2,500 250 2,500 2,750 2,750 2,750 2,500 250 2,500 2,750
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