Jax Recording Studio Purchased $7,800 in Electronic Components from Music

question 34

Multiple Choice

Jax Recording Studio purchased $7,800 in electronic components from Music World.Jax signed a 60-day,8% promissory note for $7,800.Music World's journal entry to record the sales transaction is:

• A)Debit Accounts Receivable $7,800;credit Sales $7,800
• B)Debit Accounts Receivable $7,904;credit Sales $7,904
• C)Debit Notes Receivable $7,800;credit Sales $7,800
• D)Debit Notes Receivable $7,904;credit Sales $7,904
• E)Debit Notes Receivable $7,800;debit Interest Receivable $104;credit Sales $7,904

---

Definitions:

Standard Deviation

A statistical measurement that quantifies the variation or dispersion of a set of data points from its mean, commonly used to gauge volatility in finance.

Diversified Portfolio

An investment strategy that spreads investments across various asset classes to reduce risk and increase the potential for returns.

Stand-Alone Basis

Evaluating or considering something independently from other entities or factors, often used in financial analysis or investment decision making.

Capital Gains Yields

The percentage increase in the value of a financial asset, reflecting the difference between the purchase price and the selling price.