The Jimenez Company accepted an interest-bearing note to settle a past-due account originating from a sale of merchandise. When the note is collected, the interest earned should be credited to
A)Allowance for Doubtful Accounts.
B)Interest Income.
C)Sales.
D)Notes Receivable.

Question

Quizplus · Accepted Answer

The Answer of The Jimenez Company accepted an interest-bearing note to settle a past-due account originating from a sale of merchandise. When the note is collected, the interest earned should be credited to
A)Allowance for Doubtful Accounts.
B)Interest Income.
C)Sales.
D)Notes Receivable.

The Jimenez Company Accepted an Interest-Bearing Note to Settle a Past-Due