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.

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Definitions:

Actor

A person who performs in theatrical productions, movies, or television shows.

Deterrence Hypothesis

The view that the arrest and punishment of some individuals for violation of laws deters other persons from committing the same violations.

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Formal Labeling

The process of assigning official or structured tags or names to individuals or phenomena, often based on certain behaviors or characteristics.