Majesty Productions Accepted a $7,200,120-Day,6% Note from Swartz Studio on March

question 62

Multiple Choice

Majesty Productions accepted a $7,200,120-day,6% note from Swartz Studio on March 1.On the date the note matures,Swartz is unable to pay,but Majesty intends to continue collection efforts.What entry should Majesty record on the maturity date for this dishonored note?

• A)Debit Accounts Receivable $7,200;credit Notes Receivable $7,200.
• B)Debit Accounts Receivable $7,200;credit Allowance for Doubtful Accounts $7,200.
• C)Debit Bad Debt Expense $7,344;credit Notes Receivable $7,344.
• D)Debit Accounts Receivable $7,344;credit Interest Revenue $144;credit Notes Receivable $7,200.
• E)Debit Accounts Receivable $7,056;debit Interest Revenue $144;credit Notes Receivable $7,200.

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Definitions:

Emotional Memory

The aspects of memory that are associated with emotions, enabling the recollection of emotional experiences.

Amygdala

A part of the brain's limbic system involved in processing emotions, especially fear and pleasure.

Synaptic Connections

The points at which neurons communicate with each other through neurotransmitters across a tiny gap known as the synapse.

Glial Cells

are non-neuronal cells in the central and peripheral nervous systems that support and protect neurons.