On October 2,2014,Allen Jewelry Company Accepted a 4-Month,10% Note for $2,400

question 37

Multiple Choice

On October 2,2014,Allen Jewelry Company accepted a 4-month,10% note for $2,400 in settlement of an overdue account receivable.What is the journal entry to record the acceptance of the note?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Notes receivable } & 2,400 & \\
• \hline \text { Accounts receivable } & & 2,400 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 2,400 & \\
• \hline \text { Sales revenue } & & 2,400 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Notes receivable } & 2,400 & \\
• \hline \text { Cash } & & 2,400 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts receivable } & 2,400 & \\
• \hline \text { Notes receivable } & & 2,400 \\
• \hline
• \end{array}\]

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Definitions:

MRP

Material Requirements Planning is a system for calculating the materials and components needed to manufacture a product.

Productivity

The measure of how efficiently inputs are converted into outputs in a production process.

Residential Use

Pertains to property or resources utilized for dwelling purposes, including houses and apartments designed for people to live in.

Commercial Use

The use of products, services, or information for business purposes or financial gain, as opposed to personal or educational use.