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8. ABC Co. paid XYZ Co. $2,000 for merchandise with a 60-day, 12% note dated...

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Accounting

8. ABC Co. paid XYZ Co. $2,000 for merchandise with a 60-day, 12% note dated October 31st. If ABC pays off the note at maturity, what entry should XYZ make on its books at that time? A. Cash 2,040 Notes Receivable 2,040 B. Notes Payable 2,000 Interest Expense 40 Cash 2,040 C. Cash 2,040 Notes Receivable 2,000 Interest Revenue 40 D. Cash 2,240 Notes Receivable 2,000 Interest Revenue 240

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