Question 20 options: Cairo Co. uses the allowance method of accounting for uncol

Question

Question 20 options:
Cairo Co. uses the allowance method of accounting for uncollectible accounts. Cairo Co. accepted a $8,000, 12%, 90-day note dated June 16, from Alexandria Co. in exchange for its past-due account receivable. The following is a list of accounts from its ledger:

Accounts Payable
Accounts Receivable
Allowance for Doubtful Accounts
Bad Debt Expense
Cash
Factoring Fee Expense
Interest Earned
Interest Expense
Interest Receivable
Notes Payable
Notes Receivable
Sales
Indicate the number corresponding to the accounts (as shown above) used in recording the collection of the note receivable assuming Cairo Co. has a December 31 year-end. Be sure not to include any extra wording, $, commas, or decimal points.

which ONE would be debited.
and
which TWO would be credited.

Explanation / Answer

Notes Receivable would be debited and Accounts Receivable would be credited.

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