Assume That on November 1,a Note Which Has a Face

question 84

Multiple Choice

Assume that on November 1,a note which has a face value of $9,000,bears interest at 9 percent for 120 days,received from a customer as an extension of her past-due account is dishonored.The entry that would be made to record the dishonor include all except

• A)a debit to Accounts Receivable for $9,000
• B)a credit to Interest Income for $266
• C)a credit to Notes Receivable for $9,000
• D)a debit to Accounts Receivable for $9,266

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Definitions:

Quota Rent

A financial benefit obtained by importers who receive a license under a quota system which limits the quantity of goods that can be imported.

Supply Price

The minimum price at which a seller is willing to sell a good or service, often determined by the cost of production and market conditions.

Demand Price

The highest price a consumer is willing to pay for a good or service, influenced by personal value perception and financial capability.

Equilibrium Quantity

The amount of products or services available and sought after at the balance price.