The party promising to pay a note at maturity is the payee.
  • True
  • False
The journal entry to record a note received from a customer to apply on account is
  • False
  • debit Notes Receivable; credit Accounts Receivable
  • dishonored
  • maturity value
If the maker of a note fails to pay the debt on the due date, the note is said to be dishonored.
  • True
  • False
A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is
  • False
  • $10,200
  • $9,000
  • $300
The maturity value of a note receivable is always the same as its face value.
  • True
  • False
The amount of a promissory note is called the
  • False
  • maturity value
  • face value
  • dishonored
The amount of the promissory note plus the interest earned on the due date is called the
  • dishonored
  • maturity value
  • face value
  • True
A $6,000, 60-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is
  • debit Accounts Receivable, $6,120; credit Notes Receivable, $6,000; Credit Interest Revenue, $120
  • $10,200
  • debit Notes Receivable; credit Accounts Receivable
  • $9,000
When a note is received from a customer on account, it is recorded by debiting Accounts Receivable and crediting Notes Receivable.
  • True
  • False
In computing the maturity date of a note, the date the note is issued is included but the due date is omitted.
  • True
  • False
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