Question

On January 15, 2018, Crane Company received a two-month, 9%, $8000 note from William Pentel for the settlement of his open account. The entry by Crane Company on March 15, 2018 if Pentel dishonors the note and collection is expected is:

A.   Accounts Receivable—W. Pentel 7880 

Interest Lost 120 

    Notes Receivable   8000

B. Bad Debt Expense 8120 

    Notes Receivable   8120

C. Accounts Receivable—W. Pentel 8120 

    Notes Receivable   8000

    Interest Revenue   120

D. Accounts Receivable—W. Pentel 8000 

    Notes Receivable   8000

 



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