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

question 18

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 $10,000 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 $10,150
• B) debit to Interest Receivable for $150
• C) credit to Interest Revenue for $150
• D) debit to Notes Receivable for $10,000

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period, leading to a rise in the country’s wealth.

Dumping

The practice of selling a product in a foreign market at a price that is below the cost of production or lower than the price in the home market.

Pet Accessories

Non-essential items for pets, such as toys, clothing, beds, and grooming products, designed to enhance the care and comfort of domestic animals.

Exports

Goods or services sold by a country or business to buyers in another country.