45-day note of harold stone.

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Reference no: EM13688092

Fall Company holds a $4,000, 8%, 45-day note of Harold Stone. On the maturity date Stone dishonors the note. Which of the following statements is true regarding Fall Company's journal entry to record this event?

a) Fall Company has no entry to make.

b) The entry will include a debit to interest revenue for $40.

c) The entry will include a debit to accounts receivable for $4,040.

d) The entry will include a credit to notes receivable for $4,000.

e) Both C and D are true statements.

Reference no: EM13688092

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