Question

A note receivable Mild Max Cycles discounted with recourse was dishonored on its maturity date. Mild Max would debit:
A. A loss on dishonored receivable.
B. A receivable.
C. Dishonored note expense.
D. Interest expense.

Answer 1

I had a problem with this question too, do a search for Ch6 since they won't let me post websites here. Look at the bottom of the examples and I think it will make it a little more clear.