On November 1,Orpheum Company Accepted a $10,000,90-Day,8% Note from a Customer

question 186

Multiple Choice

On November 1,Orpheum Company accepted a $10,000,90-day,8% note from a customer settle an account.What entry should be made on November 1 to record the acceptance of the note?

• A)Debit Note Receivable $10,000; credit Cash $10,000.
• B)Debit Note Receivable $10,000; credit Accounts Receivable $10,000.
• C)Debit Note Receivable $10,000; credit Sales $10,000.
• D)Debit Note Receivable $10,200; credit Accounts Receivable $10,000; credit Interest Revenue $200.
• E)Debit Sales $10,000; credit Accounts Receivable $10,000.

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Definitions:

Publicly Held Corporation

A company that sells its stocks or shares to the public on at least one stock exchange.

Gross Investment

The total amount spent on new fixed investment plus replacement investment, without accounting for depreciation.

Net Investment

The total amount spent on new capital assets minus the depreciation on existing assets.

Capital Stock

The total amount of physical and financial assets owned by a company or country, including machinery, buildings, and investments.