On August 1, Kim Company Accepted a 90-Day Note Receivable

question 125

Multiple Choice

On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $20,000 face value and 6% interest. On October 30, the journal entry to record the collection of the note should include a

• A) credit to Notes Receivable for $20,300
• B) debit to Interest Receivable for $300
• C) credit to Interest Revenue for $300
• D) debit to Notes Receivable for $20,000

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