Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below. On November 1, 2017, Salem Corporation sold and priced at $340,000 in exchange for a 3%, six-month note receivable Part 1 of 3 The journal entry made by Salem to record this transaction on November 1, 2017, includes: 3.33 points Multiple Choice Print A credit to Interest Revenue of $5,100. A debit to Interest Receivable of $5,100. A debit to Notes Receivable of $345,100. A debit to Notes Receivable of $340,000.

Explanation / Answer

The correct answer is A Debit to Notes Receivable of $ 340,000

Note :

This is because the Land is sold at the price of $ 340,000 and the notes receivable is exchanged for the same. Hence receivable being an asset increases. Also it is a general rule that when the assets increases it must be debited.

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