Tricia's Decor Purchased Merchandise from House Beautiful and Issued a Promissory

question 98

Multiple Choice

Tricia's Decor purchased merchandise from House Beautiful and issued a promissory note. Tricia should record the transaction as:

• A) debit Purchases and credit Notes Payable for the principal amount of the note.
• B) debit Purchases and credit Notes Payable for the maturity value of the note.
• C) debit Purchases and credit Accounts Payable for the face amount of the note.
• D) debit Purchases and credit Accounts Payable for the maturity value of the note.

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Definitions:

Specific Performance

A legal remedy requiring a party to execute a contract according to its precise terms.

Seller

An individual or entity that offers goods or services for sale to a buyer in exchange for compensation.

Lessor

The party in a lease agreement who owns the property and grants the right of use to another party, called the lessee, in exchange for payment.

Contractual Remedies

Legal means available to a party under a contract to enforce its rights or compensate for the other party's breach.