Your Company Lent a Customer $5,000 to Satisfy the Customer's

question 107

Multiple Choice

Your company lent a customer $5,000 to satisfy the customer's overdue accounts receivable.The loan is for one year at an annual interest rate of 5%.Six months later the customer repays the principal and interest.The principal part of the repayment should be recorded as a:

• A)debit to Cash and credit to Notes Receivable.
• B)debit to Notes Receivable and credit to Accounts Receivable.
• C)debit to Cash and credit to Accounts Receivable.
• D)debit to Notes Receivable and credit to Cash.

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Definitions:

Physiological Desire

An innate biologically-driven urge, such as hunger or thirst, that prompts an individual to fulfill a need.

Personal Attributions

Explanations for individuals' behavior that relate to their personal characteristics, such as abilities, emotions, or efforts.

Passionate Love

An intense emotional and physical attraction to someone, often characterized by a desire for union and connection.

Companionate Love

An intimate form of love that is characterized by deep commitment, affection, and emotional intimacy, as opposed to passionate love.