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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