Teller Purchased Merchandise from TechCom on October 17 of the Current

question 38

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. If the note is dishonored, what entry should TechCom make on January 15 of the next year?

• 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 Accounts Receivable $4,920; credit Interest Revenue $20; credit Interest Receivable $100, credit Notes Receivable $4,800.

---

Definitions:

Chair Conformer

A stable, three-dimensional conformation of cyclohexane characterized by a shape resembling a chair, minimizing steric strain and torsional strain.

α-D-Glucopyranose

An alpha anomer of glucose in its cyclic form, where the hydroxyl group at the anomeric center is in the axial position.

Pyranose Forms

The six-membered oxygen-containing heterocyclic forms of monosaccharides or sugars.

Monosaccharide

The simplest form of carbohydrates, consisting of a single sugar molecule, such as glucose or fructose.