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On November 1, Orpheum Company accepted a $10,000, 90-day, 8% note from a customer settle an account.


What entry should be made on the November 1 to record the note acceptance?


A- Debit Note Receivable $10,000; credit Cash $10,000.


B- Debit Note Receivable $10,000; credit Accounts Receivable $10,000.


C- Debit Note Receivable $10,000; credit Sales $10,000.


D- Debit Cash $10,000; credit Sales $10,000.


E- Debit Sales $10,000; credit Accounts Receivable $10,000.

Respuesta :

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Answer:

B- Debit Note Receivable $10,000; credit Accounts Receivable $10,000.

Explanation:

The following Journal entry is to recorded by the Orpheum company on November 1 in its accounts when it receives the note receivable from the credit customer to settle an account:

                                                         Debit               Credit

Note Receivable                             $10,000

Accounts Receivable                                               $10,000                  

Based on the above journal entry, the answer shall be B- Debit Note Receivable $10,000; credit Accounts Receivable $10,000.

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