Frontline Company Holds a $1,000,12%,90-Day Note of J

question 139

Multiple Choice

Frontline Company holds a $1,000,12%,90-day note of J.Candioto.At maturity,Candioto dishonors the note.How would the company record dishonoring of the note?

• A)Debit Accounts Receivable-J.Candioto for $1,000 and credit Notes Receivable for $1,000.
• B)Debit Notes Receivable-J.Candioto for $1,000 and credit Accounts Receivable for $1,000.
• C)Debit Accounts Receivable-J.Candioto for $1,030 and credit Notes Receivable for $1,030.
• D)Debit Notes Receivable-J.Candioto for $1,030,credit Interest Revenue for $30,and credit Accounts Receivable for $1,000.
• E)Debit Accounts Receivable-J.Candioto for $1,030,credit Interest Revenue for $30,and credit Notes Receivable for $1,000.