Cheung Ltd Has an Account Receivable for $12 000 from R.Morris

question 10

Multiple Choice

Cheung Ltd has an account receivable for $12 000 from R.Morris that is overdue.Morris requests a 60-day extension of the payment date and Cheung Ltd agrees by accepting a fixed 60-day,12% promissory note in exchange for the accounts receivable.The entry Cheung Ltd makes on receipt of the note is:

• A)Debit Accounts Receivable $12 000,debit Unearned Interest $236.71; credit Bills Receivable $12,236.71
• B)Debit Bills Receivable $12 236,71; credit Accounts Receivable $12 000,credit Unearned Interest $236.71
• C)Debit Bills Receivable $12,000; credit Accounts Receivable $12 000
• D)Debit Bills Receivable $12 236,71; credit Accounts Receivable $12 000,credit Interest Revenue $236.71

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Definitions:

Shared Premises

Commonly accepted beliefs or assumptions among members of an organization or group that form the basis for decision-making and behavior.

Institutional Integration

The process by which various parts of an organization are brought together and made to work seamlessly as a whole.

Internal Integration

The process of ensuring that various parts of an organization work together efficiently and cohesively.

Structural Adaptation

The process by which organizations or entities change their internal framework to better respond to external pressures, demands, or opportunities.