a-customer-cannot-pay-their-10000-account-receivable-on-time-and-offers-a-120-da

Question

A customer cannot pay their $10,000 account receivable on time and offers a 120-day, 5% note instead. What journal entry should be made to reflect this change?

Accepted Answer

Debit Notes Receivable $$10,000; Credit Accounts Receivable 10$$,000

Answer

Debit Accounts Receivable $$10,000; Credit Notes Receivable 10$$,000

Answer

Debit Cash $$10,000; Credit Notes Receivable 10$$,000

Answer

Debit Interest Receivable $$10,000; Credit Accounts Receivable 10$$,000

A customer cannot pay their \$10,000 account receivable on time and offers a 120-day, 5% note instead. What journal entry should be made to reflect this change?