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If the amount due on a note recelvable is not collected at maturity. Muitiple Cholce the face value of the note should continue to be carrled in the Notes Recelvable account until all possible means of collecting the note have been exhausted. Uncollectible Accounts Expense should be debited. Allowance for Doubtful Accounts should immediately be credited. Accounts Receivable is debited for the maturity value. A firm purchased equipment for $3,000 on credit and issued a 180 -day note bearing interest at 8 percent as evidence of the debt. The journal entry to record this transaction is Multuple Choice debit Equipment for $3,000 and credit Accounts Payable for $3,000. debit Equipment for $3,120 and credit Notes Payable for $3,120. debit Equipment for $3,000, and credit Notes Payable for $3,000. Equipment for $3,000, debit Interest Expense for $120, and credit Notes Payable for $3,120 On August 1, a firm purchased equipment for $5,000, signing a 60 -day note bearing interest at 9 percent. The entry to record the payment of the amount due on September 30 is (Assume 360 days In a year. Do not round intermedlate calculations.) Multiple Choice debit Notes Recelvable $5.075 and a credit to Cash for $5,075. debit Notes Payable $5,000, a debit to Interest Expense for $75, and a credit to Cash for $5.075. debit Equipment $5,000 and a credit to Cash for $5,000 a debit to Notes Payable $5.075, a debit to interest income for $75, and a credit to Cash for $5,150. The Jimenez Company accepted an interest-bearing note to settle a past-due account originating from a sale of merchandise. When the note is collected, the interest earned should be credited to Muitiple Cholce Sales. Interest income. Notes Recelvable. Allowance for Doubtful Accounts. A firm purchased equipment for $6,000 on credit and issued a 120 -day note bearing interest at 9 percent as evidence of the debt. The journal entry to record the issuance of the note is: Muitiple Choice debit Equipment for $6,180, credit Interest Expense for $180, and credit Notes Payable for $6,000. debit Equipment for $6.000, debit interest Expense for $180 and credit Notes Payable for $6,180. debit Equipment for $6.540, and credit Accounts Payable for $6,540. debit Equipment for $6,000, and credit Notes Payable for $6,000

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