Sloan Company receives a $3,000, 3-month, 6% promissory note from Day Company in settlement of an open accounts receivable. What entry will Sloan Company make upon receiving the note?

a. Notes Receivable 3,045 Accounts Receivable—Day Company 3,045
b. Notes Receivable 3,045 Accounts Receivable—Day Company 3,000 Interest Revenue 45
c. Notes Receivable 3,000 Interest Receivable 45 Accounts Receivable—Day Company 3,000 Interest Revenue 45
d. Notes Receivable 3,000 Accounts Receivable—Day Company 3,000

Answer: d. Notes Receivable 3,000 Accounts Receivable—Day Company 3,000

Business

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