Question 11 options: Below are the names of several accounts from a business\' g

Question

Question 11 options:
Below are the names of several accounts from a business' general ledger with each account name preceding by a number.

1 Accounts Payable
2 Accounts Receivable
3 Allowance for Doubtful Accounts
4 Bad Debt Expense
5 Cash
6 Factoring Fee Expense
7 Interest Earned
8 Interest Expense
9 Interest Receivable
10 Notes Payable
11 Notes Receivable
12 Sales
Indicate the number corresponding to the accounts (as shown above) used in recording the transaction below.

Transaction:

Received a note on a past due account.

would be debited.
would be credited.

Explanation / Answer

Received a note on a past due account.

11 Notes Receivable would be debited.

2 Accounts Receivable would be credited.

Explaination : When Note is received our debtors ie account recivable are converted into notes receivable, thus balance of accouts receivable decreases.

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