Answer Happy

On January 1, 2015, Oxford Company finished consultation services and accepted in exchange a promissory note with a face value of $600,000 and a due date of December 31, 2017. The stated rate of interest is 5% with interest receivable at the end of each year through 12/31/17. Assume an effective interest rate of 10% is implicit in the agreed-upon price. The effective amortization method is used Oxford's journal entry on 1/1/15 to record service revenue will include: Select one: Oo. A credit to Notes Receivable for $600,000 O b: A credit to Service Revenue for $600,000 OC A debit to Discount on Notes Receivable for $74,602 Od. A credit to Service Revenue for $525,398 O A credit to Discount on Notes Receivable for $52,145