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Chen Inc. accepted a two-year noninterest-bearing note for $605,000 on January...

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Accounting

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Chen Inc. accepted a two-year noninterest-bearing note for $605,000 on January 1, 2021. The note was accepted as payment for merchandise with a folr value of $500,000. The effective interest rate is 10% What is the correct entry to record the note? Multiple Choice Notes receivable Accounts receivable 500,880 500,000 Notes receivable Accounts receivable 605,000 605,000 None of these answer choices are correct Notes receivable Discount on notes receivable Sales revenue 605,000 105,000 500,000 Notes receivable Interest revenue Cost of sales 605,000 105,000 500,000

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