On August 1, Kim Company Accepted a 90-Day Note Receivable

question 125

Multiple Choice

On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $20,000 face value and 6% interest. On October 30, the journal entry to record the collection of the note should include a

• A) credit to Notes Receivable for $20,300
• B) debit to Interest Receivable for $300
• C) credit to Interest Revenue for $300
• D) debit to Notes Receivable for $20,000

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Definitions:

Service Locations

Sites selected for providing services to customers, often determined based on accessibility and demand.

Goods-Producing Location Decisions

The process of choosing optimal locations for manufacturing or production facilities based on factors like cost, logistics, and supply chain considerations.

Customer Contact Issues

Problems encountered during interactions between a business and its customers, often requiring resolution to maintain customer satisfaction.

Major Costs

The significant expenses incurred in the operation of a business or the execution of a project.