On December 1,Watson Enterprises Signed a $24,000,60-Day,4% Note Payable as Replacement

question 93

Multiple Choice

On December 1,Watson Enterprises signed a $24,000,60-day,4% note payable as replacement of an account payable with Erikson Company.What is the journal entry that should be recorded upon signing the note?

• A)Debit Accounts Receivable $24,000;credit Notes Receivable $24,000
• B)Debit Accounts Payable $24,000;credit Notes Payable $24,000
• C)Debit Accounts Payable $24,160;credit Notes Payable $24,160
• D)Debit Notes Payable $24,000;debit Interest Expense $160;credit Accounts Payable $24,160
• E)Debit Notes Payable $24,000;debit Interest Expense $160;credit Cash $24,160

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Definitions:

Scheduling

The establishment of a fixed time for visiting a customer’s business.

Travel Pattern

Typical routes or itineraries followed by individuals or groups during their travels, often analyzed for marketing or planning purposes.

Territory

In business, territory refers to a specified area or segment assigned to a salesperson, team, or a distributor within which they operate or have exclusive rights to engage with potential customers.

Qualify An Account

Qualifying an account involves determining whether a potential customer meets the criteria to be considered a viable prospect for sales or service.