Specialty Inc

question 33

Multiple Choice

Specialty Inc.converts an existing account receivable to a note receivable to allow an extended payment period.Specialty receives a $2,000,3-month,12% promissory note from its customer.What entry will Specialty make upon receipt of the note?

• A)Debit Notes Receivable and credit Accounts Receivable for $2,060.
• B)Debit Accounts Receivable and credit Notes Receivable for $2,000.
• C)Debit Notes Receivable for $2,000,debit Interest Receivable for $60,credit Accounts Receivable for $2,000,and credit Interest Revenue for $60.
• D)Debit Notes Receivable and credit Accounts Receivable for $2,000.

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Definitions:

Custody Roles

Responsibilities and duties associated with the supervision, care, and control of individuals who have been detained or imprisoned.

Incarceration Rate

The number of people held in prisons or jails per 100,000 population within a particular jurisdiction.

Controls

Measures or regulations to manage, direct, or command things or people.