When an interest-bearing note comes due and is uncollectible,the journal entry includes:
A)debiting Notes Receivable;crediting Accounts Receivable.
B)debiting Notes Receivable;crediting Accounts Receivable and Interest Revenue.
C)debiting Accounts Receivable;crediting Interest Revenue.
D)debiting Accounts Receivable;crediting Notes Receivable and Interest Revenue.

Question

Quizplus · Accepted Answer

When an interest-bearing note is uncollectible, the amount due is transferred to Accounts Receivable. The journal entry debits Accounts Receivable and credits Notes Receivable for the principal and Interest Revenue for the interest.

When an Interest-Bearing Note Comes Due and Is Uncollectible,the Journal