When an Interest-Bearing Note Comes Due and Is Uncollectible,the Journal

question 2

Multiple Choice

When an interest-bearing note comes due and is uncollectible,the journal entry includes:

• A)debiting Notes Receivable; crediting Accounts Receivable.
• B)debiting Notes Receivable; crediting Accounts Receivable and Interest Revenue.
• C)debiting Accounts Receivable and crediting Interest Revenue.
• D)debiting Accounts Receivable and crediting Notes Receivable and Interest Revenue.

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Definitions:

Equal Pay Act

A U.S. law that prohibits wage discrimination based on sex by requiring equal pay for equal work performed by employees in the same establishment.

Liquidated Damages

A predetermined amount of money stipulated within a contract that one party will pay to the other in the event of a breach.

EEOC

The Equal Employment Opportunity Commission (EEOC) is a federal agency that administers and enforces civil rights laws against workplace discrimination in the United States.

BFOQ Defense

Stands for "Bona Fide Occupational Qualification," it is a defense used by employers to justify discrimination that is reasonably necessary to the normal operation of a particular business.