On November 6, an 8%, 90-Day, $3,000 Note Was Accepted

question 17

Multiple Choice

On November 6, an 8%, 90-day, $3,000 note was accepted by Carmen in exchange for merchandise. What entry does Carmen make on December 31 to recognize the interest? (Use a 360-day year. Do not round any intermediate calculations. Round your final answer to the nearest cent.)

• A) Debit Interest income; credit Interest Receivable for $36.67
• B) Debit Interest Receivable; credit Interest Income for $36.67
• C) Debit Interest Receivable; credit Interest Income for $240.00
• D) None of these answers is correct.

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Definitions:

Production Blocking

A phenomenon where the flow of ideas or productivity is hindered or obstructed, often occurring in group settings during brainstorming or collaborative efforts.

Social Entity

Refers to any organization or group that is formed by individuals who share common goals, interests, or identities, ranging from small groups to large institutions.

Fulfill Purpose

The act of achieving or realizing an intended or desired objective.

Brainstorming

A creative technique for generating a large volume of ideas in a group setting, emphasizing quantity over quality and withholding criticism during the process.