Which of the Following Would Be Included in the Entry

question 134

Multiple Choice

Which of the following would be included in the entry by the payee to record a dishonored note receivable?

• A) a debit to Accounts Receivable
• B) a debit to Interest Revenue
• C) a debit to Notes Receivable
• D) a credit to Interest Expense

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Definitions:

Payables Period

The average amount of time it takes for a business to pay its invoices and bills to suppliers.

Payables Period

The average period of time it takes for a business to pay off its debts to suppliers.

Credit Sales

Sales transactions where the payment is deferred, allowing the buyer to pay at a later date.

COGS

The Cost of Goods Sold represents the direct expenses related to the production of goods that a company sells.