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

question 29

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.Cheung Ltd makes which entry to record the collection of the promissory note from R.Morris including interest?

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

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Definitions:

Confounding Variables

In a correlational study, an outside variable related to the primary variables; also known as third variables.

Gene-Environment Interaction

The complex interplay between genetic predispositions and environmental influences on an individual's traits and behaviors.

Individual Differences

Variations among individuals in their behavior, emotion, and cognition.