Which of the following would be included in the entry to record a dishonored note receivable by the payee?
A) A debit to Accounts receivable
B) A debit to Interest revenue
C) A debit to Notes receivable
D) A credit to Interest expense

Question

Quizplus · Accepted Answer

When a note receivable is dishonored, the payee debits Accounts Receivable to reflect the amount due from the maker, including any interest, as the note is no longer collectible as a note.

Which of the Following Would Be Included in the Entry