Teller Purchased Merchandise from TechCom on October 17 of the Current

question 21

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 December 31, to record the accrued interest on the note?

• A) Debit Cash $20; credit Notes Receivable $20.
• B) Debit Cash $100; credit Notes Receivable $100.
• C) Debit Interest Receivable $20; credit Interest Revenue $20.
• D) Debit Interest Receivable $100; credit Interest Revenue $100.
• E) Debit Cash $120; credit Interest Revenue $100; credit Interest Receivable $20.

---

Definitions:

Illness

A state of poor health, involving a condition of disease or ailment that affects the body or mind.

Death

The cessation of all biological functions that sustain a living organism.

Fourteenth Century

The period from 1301 to 1400 in the Gregorian calendar, significant for its historical, cultural, and societal developments.

Europe's Population

The total number of people living in Europe, encompassing diverse demographics and density variations across its countries.