Answer:
D. Debit Accounts Receivable $7,344; credit Interest Revenue $144; credit Notes Receivable $7,200.
Explanation:
Interest: $7,200 × .06 × 120/360 = $144
The entry that Majesty should record on the maturity date for this dishonored note is :
Debit Accounts Receivable $7,344
Credit Interest Revenue $144
Credit Notes Receivable $7,200.
Answer:
D. Debit Accounts Receivable $7,344; credit Interest Revenue $144; credit Notes Receivable $7,200.
Explanation:
Majesty record on the maturity date for this dishonored note will be Debit Accounts Receivable $7,344; credit Interest Revenue $144; credit Notes Receivable $7,200.