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:

Futures Price

The agreed-upon price for the future purchase or sale of an asset in a futures contract.

Profit

The financial gain made in a transaction or operation, calculated as total revenue minus total expenses.

April

The fourth month of the year in the Gregorian calendar, known for its spring season in the Northern Hemisphere and autumn in the Southern Hemisphere.

Contract Multiplier

A factor used to determine the cash value of each point of change in a futures or options contract, affecting the total contract value.