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.

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Definitions:

NumberFormatException

An exception thrown in Java when an attempt is made to convert a string into a numeric format, but the string does not have the appropriate format.