154. Rosen Company receives a $3,000, 3-month, 6% promissory note from Bay Compa

Question

154. Rosen Company receives a $3,000, 3-month, 6% promissory note from Bay Company in settlement of an open accounts receivable. What entry will Rosen Company make upon receiving the note?


a. debit Notes Receivable 3,000
credit Accounts Receivable-Bay Company 3,000


b. debit Notes Receivable 3,045
credit Accounts Receivable-Bay Company 3,045


c. debit Notes Receivable 3,045
credit Accounts Receivable-Ray Company 3,000
credit Interest Revenue 45


d. debit Notes Receivable 3,000
debit Interest Receivable 45
credit Accounts Receivable-Bay Company 3,000
credit Interest Revenue 45

Explanation / Answer

a. debit Notes Receivable 3,000 credit Accounts Receivable-Bay Company 3,000

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