Teller Purchased Merchandise from TechCom on October 17 of the Current

question 70

Multiple Choice

Teller purchased merchandise from TechCom on October 17 of the current year and TechCom accepted Teller's $4,800, 90-day, 10% note. What entry should TechCom make on January 15 of the next year when the note is paid?

• A) Debit Notes Receivable $4,800; debit Interest Receivable $120; credit Sales $4,920.
• B) Debit Cash $4,920; credit Notes Receivable $4,920.
• C) Debit Cash $4,920; credit Interest Revenue $100; credit Interest Receivable $20; credit Notes Receivable $4,800.
• D) Debit Cash $4,920; credit Interest Revenue $20; credit Interest Receivable $100; credit Notes Receivable $4,800.
• E) Debit Cash $4,920; credit Interest Revenue $120; credit Notes Receivable $4,800.

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Definitions:

British Securities

Financial instruments issued by United Kingdom entities, including stocks, bonds, or other investment vehicles.

Total Return

The overall gain or loss on an investment over a specific period, including any interest, dividends, and capital gains.

U.S. Dollars

The official currency of the United States, widely used for international transactions.

Future Rate

An expected rate for a financial instrument or an economic variable at a specified future date.