Which of the following is not true with regard to a $3,000, 14%, 90-day note that is dishonored?
A. an account receivable is charged with the maturity value of the note
B. the Interest Earned account is credited
C. the Notes Receivable account is credited for the maturity value
D. interest may be charged on the outstanding balance
Answer:C
Which of the following is not true with regard to a $3,000, 14%, 90-day note that is dishonored?
A. an account receivable is charged with the maturity value of the note B. the Interest Earned account is credited C. the Notes Receivable account is credited for the maturity value D. interest may be charged on the outstanding balance