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1. A promissory note:
A) Is a conditional promise in writing to pay on demand or at a future date a definite sum of money.
B) Is recorded by the maker by crediting Note Receivable.
C) Is signed by the person promising to pay the note, called the payee.
D) Will be recorded on both the books of the payee and the maker.
2. Fixed costs are $135,000, variable costs and price are $10 and $20 respectively. What is the net income on sales of 30,000 units?
A) $165,000
B) $300,000
C) $600,000
D) $200,000
Record the above transaction in journal entries
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