On April 12,Hong Company Agrees to Accept a 60-Day,10%,$4,500 Note

question 90

Multiple Choice

On April 12,Hong Company agrees to accept a 60-day,10%,$4,500 note from Indigo Company to extend the due date on an overdue account.What is the journal entry needed to record the payment of the note by Indigo Company on the maturity date?

• A)Debit Notes Payable $4,500;debit Interest Expense $75;credit Cash $4,575.
• B)Debit Notes Payable $4,500;credit Interest Expense $75,credit Cash $4,425.
• C)Debit Cash $4,575;credit Interest Revenue $75;credit Notes Payable $4,500.
• D)Debit Notes Payable $4,500;debit Interest Expense $112;credit Cash $4,612.
• E)Debit Cash $4,575;credit Interest Revenue $75;credit Notes Receivable $4,500.

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Definitions:

Class Inclusion

A cognitive operation that allows a person to see that some classes or sets of objects are subsets of a larger class, and to understand the relationship between the whole and its parts.

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Issues related to the sustainable management and preservation of natural resources and environments.

Working Memory

A cognitive system responsible for temporarily holding information available for processing, critical for reasoning and the guidance of decision-making and behavior.

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The ability to delay gratification and resist unwanted behaviors or urges.