On May 1,2016,Fitz installed a $475,000 sound system for International Arena.Fitz agreed to accept a $500,000 six-month,noninterest bearing note due on December 1,2016.Fitz prepares financial statements at the end of every calendar year.Fitz's journal entry to record the collection of the note plus accrued interest on December 1,2016,will include a ________.
A)credit Interest Revenue for $475,000
B)debit Interest Revenue for $25,000
C)credit Note Receivable for $500,000
D)credit Note Receivable for $475,000

Question

Quizplus · Accepted Answer

The journal entry will include a credit to Note Receivable for $500,000, which is the total amount of the note collected.

On May 1,2016,Fitz Installed a $475,000 Sound System for International