A Customer Charges a Treadmill at Mike's Sport Shop

question 175

Multiple Choice

A customer charges a treadmill at Mike's Sport Shop. The price is $2,000 and the financing charge is 9% per annum if the bill is not paid in 30 days. The customer fails to pay the bill within 30 days and a finance charge is added to the customer's account.
The accounts affected by the journal entry made by Mike's Sport Shop to record the finance charge are

• A) Accounts Receivable Cash
• B) Cash Finance Receivable
• C) Accounts Receivable Interest Payable
• D) Accounts Receivable Interest Revenue

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Definitions:

Vitreous Humor

Transparent, jelly-like material that fills the space between the lens and the retina.

Suspensory Ligaments

Suspensory ligaments are fibrous tissues that support organs, such as the lens of the eye, by attaching them to surrounding structures.

Biconcave

Describes a shape that is curved inward on both sides, like a donut.

Opaque

A characteristic of materials that are not transparent or translucent; they do not allow light to pass through.