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Your company converted an existing account receivable in the amount of $5,000 to a note receivable to allow an extended payment period. The note is due in one year and includes an annual interest rate of 5%. The customer repays the principal at the maturity date. The entry to record the receipt of the principal includes a debit to: A. Notes Receivable and credit to Accounts Receivable. B. Cash and credit to Interest Receivable. C. Cash and credit to Notes Receivable. D. Notes Receivable and credit to Cash.
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Your company converted an existing account receivable in the amount of $5,000 to a note receivable t...
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