TechCom Received a $1,000, 90-Day, 10% Note Receivable from Danny

question 102

True/False

TechCom received a $1,000, 90-day, 10% note receivable from Danny Outlaw. The journal entry to record the note includes a debit to notes receivable.

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Definitions:

Journalize

Refers to the process of recording business transactions in the journal as part of the accounting cycle.

Reporting Period

The span of time covered by the financial statements of a business.

General Journal

A primary accounting record used to document all business transactions in chronological order.

Indirect Materials

Components used in the manufacturing process that are not directly traceable to a specific product, like lubricants for machines.