Question

Jasper makes a $84,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the transaction should be:__________
a) Debit Notes Receivable for $84,000, credit Cash $84,000.
b) Debit Accounts Receivable $84,000, credit Notes Receivable $84,000.
c) Debit Cash $84,000, credit Notes Receivable for $84,000
d) Debit Notes Payable $84,000; credit Accounts Payable $84,000.
e) Debit Notes Receivable $84,000; credit Sales $84,000.

Answer 1

Answer:

a) Debit Notes Receivable for $84,000, credit Cash $84,000.

Explanation:

Based on the information given we were told that Jasper makes the amount of $84,000 which means that Jasper's appropriate journal entry to record the transaction should be:

Debit Notes Receivable $84,000

CreditCash $84,000