Teller Purchased Merchandise from Techcom on October 17 of the Current

Question 92
Multiple Choice

Teller purchased merchandise from TechCom on October 17 of the current year and TechCom accepted Teller's $4,800, 90-day, 10% note. What entry should TechCom make on January 15 of the next year when the note is paid? A) Debit Notes Receivable $4,800; debit Interest Receivable $120; credit Sales $4,920. B) Debit Cash $4,920; credit Notes Receivable $4,920. C) Debit Cash $4,920; credit Interest Revenue $100; credit Interest Receivable $20; credit Notes Receivable $4,800. D) Debit Cash $4,920; credit Interest Revenue $20; credit Interest Receivable $100; credit Notes Receivable $4,800. E) Debit Cash $4,920; credit Interest Revenue $120; credit Notes Receivable $4,800.