Jax Recording Studio Purchased $7,800 in Electronic Components from Music

question 34

Multiple Choice

Jax Recording Studio purchased $7,800 in electronic components from Music World.Jax signed a 60-day,8% promissory note for $7,800.Music World's journal entry to record the sales transaction is:

• A)Debit Accounts Receivable $7,800;credit Sales $7,800
• B)Debit Accounts Receivable $7,904;credit Sales $7,904
• C)Debit Notes Receivable $7,800;credit Sales $7,800
• D)Debit Notes Receivable $7,904;credit Sales $7,904
• E)Debit Notes Receivable $7,800;debit Interest Receivable $104;credit Sales $7,904

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Definitions:

Invisible Hand

A metaphor used by Adam Smith to describe the self-regulating nature of the market, where individual self-interest promotes societal benefit.

Economic Policy

Strategies and actions taken by the government to influence its economy, affecting issues like unemployment, inflation, and economic growth.

Monetary Stability

The condition of having stable prices and low inflation in an economy, maintaining the purchasing power of the currency.

Free Trade

International trade left to its natural course without tariffs, quotas, or other restrictions.