Comfort Shoes Received a Promissory Note from a Customer on April

question 21

Multiple Choice

Comfort Shoes received a promissory note from a customer on April 1,2017.The face amount of the note is $2,000;the terms are 12 months and 8% annual interest.At the maturity date,the customer pays for the note and interest.Comfort Shoes made the proper adjustment at the end of December for interest.The effect of recognizing the transaction on the maturity date is a(n)

• A)decrease to Cash.
• B)increase to Notes Receivable.
• C)increase to Discount on Notes Receivable.
• D)decrease to Notes Receivable.

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Definitions:

Emergency Medicine

A medical specialty focused on the immediate decision making and action necessary to prevent death or further disability in emergency medical situations.

Shift-Work

Employment practice designed to use all 24 hours of the clock by rotating employees through a set schedule of working and non-working periods.

High-Profile Area

A location or sector that receives a significant amount of public attention and visibility, often associated with prestige or high stakes.

Scientific Management

Development of the “one best way” to engage in a work process using the scientific principles established by Frederick Winslow Taylor.