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8. On August 1, Kim Company accepted a 90-day note receivable as payment for ser

ID: 2370740 • Letter: 8

Question

8. On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $10,000 face value and 6% interest. On October 30, the journal entry to record the collection of the note should include a

Answer


9. If ending inventory for the year is understated, net income for the year is overstated.

Answer True
False


10. Use the following information to answer the following questions.


11. Use the following information to answer the following questions.

a. debit to Interest Receivable for $150 b. debit to Notes Receivable for $10,000 c. credit to Notes Receivable for $10,150 d. credit to Interest Revenue for $150

Explanation / Answer

8. On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $10,000 face value and 6% interest. On October 30, the journal entry to record the collection of the note should include a

Answer


9. If ending inventory for the year is understated, net income for the year is overstated.

Answer False


10. Use the following information to answer the following questions.


11. Use the following information to answer the following questions.



d. credit to Interest Revenue for $150
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