! https://adaptive.wileyplus.com/secure/adaptivel (G On April 3, 2017. earningDa

Question

! https://adaptive.wileyplus.com/secure/adaptivel (G On April 3, 2017. earningDashboard#/practiceTest?chapld-MTY3MTEyMT11 adore : Home : Student Textbook WleyPLUS in ORION Financial Accounting, 8e Practice - Ch 8: Reporting and Analyzing Receivables 834: Green Inc. is the payee of a $10,000, 6-month, 12% note written by Yellow Inc. on November 1st, 2016. Green's fiscal year ends on December 31st, Given this situation, what accounting entries should GreenP make to record 3ist make to record the receipt of payment in full on May 1st, 2017? A Cash-credit of $10,600; Notes Receivable-debit of $10,000; Interest Receivable-debit of $400; Interest Revenue debit of $200 (B) Cash $200; Interest Revenue debit of $10,600; Notes Receivable-credit of $10,000; Interest Receivable = credit of credit of $400 CCash credit of $10,600; Notes Receivable - debit of $10,000; Interest Receivable s debit of $200; Interest Revenue debit of $400 Que Cash-debit of $10,600; Notes Receivable-credit of $10,000; Interest Receivable = credit of $400; Interest Revenue = credit of $200 D :

Explanation / Answer

The correct answer is B.

Since cash is an asset and, when asset increases Dr Entry is made

Notes receivable will be Cr with 10000, an interest receivable and interest revenue account will be Cr respectively.

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