Question

On March 14, Zest Co. accepted a 120-day, 6% note in the amount of $5,000 from AZC Co., a customer. On the due date of the note, AZC dishonors the note and fails to pay. The journal entry that Zest would make to record the failure to pay this note on the due date would include a debit to: Multiple choice question. Notes Receivable for $5,100 Notes Receivable for $5,000 Cash for $5,000 Accounts Receivable - AZC for $5,000 Accounts Receivable - AZC for $5,100 Cash for $5,100

Answer 1

account receivable $5100

Step-by-step explanation:

cash is not received:accounts receivable is debited for $500

Answer 2

Accounts Receivable -AZC for $5100

Step-by-step explanation:

Based on the information given The journal entry that Zest would make in order to record the failure to pay this note on the due date would include a debit to:

Accounts Receivable -AZC for $5100

Calculated as :

Accounts Receivable=$5000+[ $5000 x .06 x (120/360) ]

Accounts Receivable=$5000+ $100

Accounts Receivable=$5100