On October 2, 2014, Allen Jewelry Company Accepted a 4-Month

question 115

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?

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Definitions:

Store Equipment

Fixed assets specifically purchased for use in a retail store setting, such as shelving, cash registers, and display units.

Raw Materials

Basic materials that are used in the initial stages of the production process, which will be transformed into finished goods.

Inventory

The goods and materials held by a business for the purpose of sale, manufacturing, or production.

Plant Insurance

Insurance coverage specifically designed to protect the physical assets of a manufacturing or production facility, including buildings and machinery.