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

question 26

Multiple Choice

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

• 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 Accounts Receivable $4,920;credit Interest Revenue $20;credit Interest Receivable $100,credit Notes Receivable $4,800.

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Definitions:

Retina

The light-sensitive layer of tissue at the back of the inner eye, which sends visual signals to the brain.

Macula

A small, specialized central area of the retina responsible for sharp, detailed central vision.

Vitreous Humor

The clear, gel-like substance that fills the space between the lens and the retina in the eyeball, helping it maintain shape.

Choroid

A layer of blood vessels and connective tissue between the sclera and retina in the eye, providing oxygen and nutrients to the outer layers of the retina.