Answered
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 Receivable12,150 Accounts Receivable-Rey Company 12,150\begin{array}{lrr} \text { Notes Receivable} &12,150\\ \text { Accounts Receivable-Rey Company } &&12,150\\\end{array} Notes Receivable Accounts Receivable-Rey Company 12,15012,150
b.
Notes Receivable 12,150 Accounts Receivable-Rey Company 12,000 Interest Revenue150\begin{array}{lrr} \text { Notes Receivable } &12,150\\ \text { Accounts Receivable-Rey Company } &&12,000\\ \text { Interest Revenue} &&150\end{array} Notes Receivable Accounts Receivable-Rey Company Interest Revenue12,15012,000150
c.
Notes Receivable 12,000 Interest Revenue150 Accounts Receivable-Rey Company 12,000 Interest Revenue 150\begin{array}{lrr} \text {Notes Receivable } &12,000\\ \text { Interest Revenue} &150\\ \text { Accounts Receivable-Rey Company } &&12,000\\ \text { Interest Revenue } &&150\end{array}Notes Receivable Interest Revenue Accounts Receivable-Rey Company Interest Revenue 12,00015012,000150
d.
Notes Receivable12,000 Accounts Receivable-Rey Company 12,000\begin{array}{lrr} \text { Notes Receivable} &12,000\\ \text { Accounts Receivable-Rey Company } &&12,000\\\end{array} Notes Receivable Accounts Receivable-Rey Company 12,00012,000
On May 16, 2024