Please show work, thanks! Required information SB On June 1, 2018, Jensen Compan
ID: 2571189 • Letter: P
Question
Please show work, thanks!
Required information SB On June 1, 2018, Jensen Company acquired an... [The following information applies to the questions displayed below. On June 1, 2018, Jensen Company acquired an 6.2%, ten-month note receivable from a customer in settlement of an existing account receivable of $180,000. Interest and principal are due at maturity. MC Ou. 164 The proper adjusting entry... The proper adjusting entry at December 31, 2018, with regard to this note receivable includes a Multiple Choice Debit to Notes Receivable of $11,160. Credit to Interest Revenue of $11,160. Debit to Cash of $6,510 Debit to Interest Receivable of $6,510.Explanation / Answer
D. Debit to Interest Receivable of $6,510
The proper adjusting entry at December 31, 2018 with regard to this notes receivable includes a debit to Interest Receivable of:
= $180,000 × 6.2% × 7/12
= $6,510