Bill's Bikes Discounts a Customer's 90-Day, 8%, $3,000 Note at a Bank

question 8

Multiple Choice

Bill's Bikes discounts a customer's 90-day, 8%, $3,000 note at a bank at 12%. The discount period is 45 days. It records the proceeds as: (Use a 360-day year. Do not round any intermediate calculations. Round your final answers to the nearest dollar.)

• A) debit Cash $3,014; credit Notes Receivable $3,000; credit Interest Income $14.
• B) debit Cash $3,150; credit Notes Receivable $3,060; credit Interest Income $90.
• C) debit Cash $3,046; credit Notes Receivable $3,000; credit Interest Income $46.
• D) debit Cash $3,014; credit Notes Receivable $3,000; credit Interest Expense $14.

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Definitions:

2 + 2 = 4 Approach

Logical argumentation approach that convinces readers of your point of view by demonstrating how everything “adds up”.

Organizational Strategy

A comprehensive plan outlining how a company will achieve its goals and objectives, considering its resources, market position, and competition.

Logical Argument

A reasoned, structured series of statements intended to establish a position or persuade an audience.

Conclusions

Final decisions or opinions formed after considering all the relevant facts and evidence.