Uniform Supply Accepted a $4,800,90-Day,10% Note from Tracy Janitorial on October

question 102

Multiple Choice

Uniform Supply accepted a $4,800,90-day,10% note from Tracy Janitorial on October 17.What entry should Uniform Supply make on January 15 of the next year when the note is paid?

• A)Debit Notes Receivable $4,800;debit Interest Receivable $120;credit Sales $4,920.
• B)Debit Cash $4,920;credit Notes Receivable $4,920.
• C)Debit Cash $4,920;credit Interest Revenue $100;credit Interest Receivable $20;credit Notes Receivable $4,800.
• D)Debit Cash $4,920;credit Interest Revenue $20;credit Interest Receivable $100;credit Notes Receivable $4,800.
• E)Debit Cash $4,920;credit Interest Revenue $120;credit Notes Receivable $4,800.

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Definitions:

Coupon Rate

The annual interest rate paid by a bond, expressed as a percentage of the bond's face value.

Expected Annual Compound

A projection of the return that an investment is expected to yield on an annual basis, taking into account the effect of compounding.

Bond Market Analyst

A financial professional who evaluates and interprets bond market data to forecast bond price movements and interest rate trends.

Price Sensitivity

The degree to which the price of a product or service affects consumers' purchasing behaviors or the quantity demanded.