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8.) On January 15, 2010, Raymond Company received a two-month, 9%, $5,000 note Pentel for the settlement of his open account.

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Answer #1

Solution: Option A. is the correct choice.

C 5,075 Accounts Receivable-W. Pentel Notes Receivable Interest Revenue 5,000 75

Accounts rec. is debited for reinstating the debit balance of W. Pental and Note Rec. is credited for removing Note rec. from books, and Interest revenue is charged from W. Pental till 15 march. on $5,000 for 2 month = $5,000*9% * 2/12 = $75

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