Teller Purchased Merchandise from TechCom on October 17 of the Current

question 70

Multiple Choice

Teller purchased merchandise from TechCom on October 17 of the current year and TechCom accepted Teller's $4,800, 90-day, 10% note. What entry should TechCom make on January 15 of the next year when the note is paid?

• A) Debit Notes Receivable $4,800; debit Interest Receivable $120; credit Sales $4,920.
• B) Debit Cash $4,920; credit Notes Receivable $4,920.
• C) Debit Cash $4,920; credit Interest Revenue $100; credit Interest Receivable $20; credit Notes Receivable $4,800.
• D) Debit Cash $4,920; credit Interest Revenue $20; credit Interest Receivable $100; credit Notes Receivable $4,800.
• E) Debit Cash $4,920; credit Interest Revenue $120; credit Notes Receivable $4,800.

---

Definitions:

Kohlberg's Theory

A psychological framework proposed by Lawrence Kohlberg that suggests moral development occurs in six stages, from obedience and punishment orientation to universal ethical principles.

Reciprocity

A mutual exchange of privileges or benefits, as in the mutual reduction of tariffs or the return of favors between individuals or states.

Conventional Morality

Refers to a level in moral development where individuals adhere to rules and norms, particularly those valued in their society or by authority figures, to maintain social order and gain approval.

Kohlberg's Theory

A theory of moral development presented by Lawrence Kohlberg, which proposes that individuals progress through different stages of moral reasoning.