Leek Company receives a $12000 3-month 5% promissory note from Rey Company in settlement of an open accounts receivable. What entry will Leek Company make upon receiving the note? a. Notes Receivable 12 , 150 Accounts Receivable-Rey Company 12 , 150 \begin{array}{lrr} ext { Notes Receivable} & 12,150\ ext { Accounts Receivable-Rey Company } & & 12,150\\end{array} Notes Receivable Accounts Receivable-Rey Company 12 , 150 12 , 150 b. Notes Receivable 12 , 150 Accounts Receivable-Rey Company 12 , 000 Interest Revenue 150 \begin{array}{lrr} ext { Notes Receivable } & 12,150\ ext { Accounts Receivable-Rey Company } & & 12,000\ ext { Interest Revenue} & & 150\end{array} Notes Receivable Accounts Receivable-Rey Company Interest Revenue 12 , 150 12 , 000 150 c. Notes Receivable 12 , 000 Interest Revenue 150 Accounts Receivable-Rey Company 12 , 000 Interest Revenue 150 \begin{array}{lrr} ext {Notes Receivable } & 12,000\ ext { Interest Revenue} & 150\ ext { Accounts Receivable-Rey Company } & & 12,000\ ext { Interest Revenue } & & 150\end{array} Notes Receivable Interest Revenue Accounts Receivable-Rey Company Interest Revenue 12 , 000 150 12 , 000 150 d. Notes Receivable 12 , 000 Accounts Receivable-Rey Company 12 , 000 \begin{array}{lrr} ext { Notes Receivable} & 12,000\ ext { Accounts Receivable-Rey Company } & & 12,000\\end{array} Notes Receivable Accounts Receivable-Rey Company 12 , 000 12 , 000

Question

Leek Company receives a $12000 3-month 5% promissory note from Rey Company in settlement of an open accounts receivable. What entry will Leek Company make upon receiving the note? a.  Notes Receivable 12 , 150  Accounts Receivable-Rey Company  12 , 150 \begin{array}{lrr}  	ext {  Notes Receivable}  & 12,150\ 	ext { Accounts Receivable-Rey Company }  & & 12,150\\end{array}  Notes Receivable  Accounts Receivable-Rey Company  ​ 12 , 150 ​ 12 , 150 ​ b.  Notes Receivable  12 , 150  Accounts Receivable-Rey Company  12 , 000  Interest Revenue 150 \begin{array}{lrr}  	ext { Notes Receivable }  & 12,150\ 	ext { Accounts Receivable-Rey Company }  & & 12,000\ 	ext {   Interest Revenue}  & & 150\end{array}  Notes Receivable   Accounts Receivable-Rey Company   Interest Revenue ​ 12 , 150 ​ 12 , 000 150 ​ c. Notes Receivable  12 , 000  Interest Revenue 150  Accounts Receivable-Rey Company  12 , 000  Interest Revenue  150 \begin{array}{lrr}  	ext {Notes Receivable  }  & 12,000\ 	ext {   Interest Revenue}  & 150\ 	ext { Accounts Receivable-Rey Company }  & & 12,000\ 	ext { Interest Revenue }  & & 150\end{array} Notes Receivable   Interest Revenue  Accounts Receivable-Rey Company   Interest Revenue  ​ 12 , 000 150 ​ 12 , 000 150 ​ d.  Notes Receivable 12 , 000  Accounts Receivable-Rey Company  12 , 000 \begin{array}{lrr}  	ext {  Notes Receivable}  & 12,000\ 	ext { Accounts Receivable-Rey Company }  & & 12,000\\end{array}  Notes Receivable  Accounts Receivable-Rey Company  ​ 12 , 000 ​ 12 , 000 ​

Courtney Hayes · Accepted Answer

Final Answer : D

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