Assume That on December 1,a Note Which Has a Face

question 152

Multiple Choice

Assume that on December 1,a note which has a face value of $18,000,bears interest at 10 percent for 90 days,received from a customer as an extension of his past-due account is dishonored.The entry that would be made to record the dishonor (ignoring interest) is:

• A) Notes receivable 18,000
• Cash 18,000
• B) Accounts receivable 18,000
• Cash 18,000
• C) Accounts receivable 18,000
• Notes receivable 18,000
• D) Cash 18,000
• Accounts Receivable 18,000

---

Definitions:

Philanthropy

The desire to promote the welfare of others, expressed especially by the generous donation of money to good causes.

Minority Group

A category of people who experience relative disadvantage as compared to members of a dominant social group.

U.S. Census Bureau

A principal agency of the U.S. Federal Statistical System responsible for producing data about the American people and economy through censuses and surveys.

New Venture Creation

The process of designing, launching, and running a new business or enterprise.