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.

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Definitions:

Costs

The expenses incurred in the production of goods or services, or in the operation of a company.

Firm Choose

The decision-making process by which a company selects among available options in strategy, operations, or other aspects of its business.

Complicated Technology

Complicated technology involves systems or devices that are complex in design, functionality, or operation, requiring specialized knowledge or skills to use or maintain.

Expected Value

A mathematical concept representing the average outcome when the same event is repeated multiple times, weighting each outcome by its probability of occurrence.