Valley spa purchased $7,800 in plumbing components from tubman co. valley spa signed a 60-day, 10% promissory note for $7,800. i

Question

3 years ago

11

Valley spa purchased $7,800 in plumbing components from tubman co. valley spa signed a 60-day, 10% promissory note for $7,800. i

f the note is dishonored, but tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (use 360 days a year.) multiple choice debit bad debt expense $7,800; credit notes receivable $7,800. debit accounts receivable—valley spa $7,930, credit interest revenue $130; credit notes receivable $7,800. debit bad debt expense $7,930; credit accounts receivable $7,930. debit accounts receivable $7,930; debit bad debt expense $130; credit notes receivable $8,060. debit accounts receivable—valley spa $7,800; credit notes receivable $7,800.

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