Upon collection of the amount due on a $15,000 face value, 60-day note with interest at 10 percent, the Note Receivable account is
A)debited for $15,250.
B)credited for $16,150.
C)credited for $15,000.
D)debited for $15,000.

Question

Quizplus · Accepted Answer

DThe Note Receivable account is credited for $15,000 to remove the note's principal amount from the company's books. It is also debited for $15,000 to record the collection of the note's face value. Interest earned is not mentioned in the options but would typically be recorded separately in an Interest Revenue account.

Upon Collection of the Amount Due on a $15,000 Face