Question

On Nov. 1, Eli Co. received a $6,000, 60-day, 6% note from a customer as payment on his $6,000 account. Eli’s journal entry to record this transaction on Nov. 1, would include a:
Debit notes receivable for $6,000, credit accounts receivable for $6,000

Answer 1

Answer:

Credit to Accounts Receivable for $6,000.  Debit to Notes Receivable for $6,000.

Explanation:

In the given report, Eli Co. will need to record the probable cash inflow and cash outflow in the account document. The amount of money that the company received is credited to the company's account while the amount of money the company will pay back to the lender is recorded as a debit. The debit will be paid later.

Answer 2

Answer:credit accounts receivable for $6,000

Explanation: this is because Eli co received a payment into their account from a customer which is a credit to their account.

It would have been a debit if Eli co paid out or made an expenditure from their account.