Teller Purchased Merchandise from TechCom on October 17 of the Current

question 21

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 December 31, to record the accrued interest on the note?

• A) Debit Cash $20; credit Notes Receivable $20.
• B) Debit Cash $100; credit Notes Receivable $100.
• C) Debit Interest Receivable $20; credit Interest Revenue $20.
• D) Debit Interest Receivable $100; credit Interest Revenue $100.
• E) Debit Cash $120; credit Interest Revenue $100; credit Interest Receivable $20.

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Definitions:

Crafting a Message

The process of carefully creating a communication to ensure it effectively reaches and influences its intended audience.

Generate

Generate means to produce or create something, often through a process that involves some level of creativity or effort.

Specific Response

A distinct or particular reply to a question, situation, or stimulus.

Distinct Traits

Unique characteristics or qualities that distinguish an individual, object, or idea from others.