Accompanying the Bank Statement Was a Credit Memo for a Short-Term

question 148

Multiple Choice

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer. What entry is required in the company's accounts?

• A) debit Notes Receivable; credit Cash
• B) debit Cash; credit Miscellaneous Income
• C) debit Cash; credit Notes Receivable and Interest Revenue
• D) debit Accounts Receivable; credit Cash

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Definitions:

Florida

A state located in the southeastern region of the United States, known for its warm climate, extensive coastlines, and diverse ecosystem.

English Law

The legal system of England and Wales, characterized by the doctrine of common law, with its principles based on judicial decisions and precedents.

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Detailed technical drawings or plans for designing and constructing machines or mechanical systems.

Samuel Slater

Known as the "Father of the American Industrial Revolution," he brought British textile technology to America, establishing the country's first successful water-powered cotton mill.