TechCom received a $1,000, 90-day, 10% note receivable from Danny Outlaw. The journal entry to record the note includes a debit to notes receivable.

Question

Quizplus · Accepted Answer

This is because TechCom received a note receivable, which is an asset, in the form of a promissory note from Danny Outlaw. Therefore, the journal entry to record the note would include a debit to notes receivable.

TechCom Received a $1,000, 90-Day, 10% Note Receivable from Danny