If the principal amount of the note is payable in lump-sum, the entity should use the present value of 1.Group of answer choicesTrueFalse

If the principal amount of the note matures in series or installment, the entity should use the present value of an ordinary annuity in getting the fair value.Group of answer choicesTrueFalse

The interest collection is computed by multiplying the nominal interest with the face value of the note.Group of answer choicesTrueFalse

On January 1, JC Co. accepted a 60-day, 6%, note in the amount of $10,000 from a customer. On March 2, the due date of the note, the customer honors the note and pays in full. The journal entry that JC would make to record the receipt of payment of this note would include a debit to:Multiple choice question.Notes Receivable in the amount of $10,100Cash in the amount of $10,100Notes Receivable in the amount of $10,000Cash in the amount of $10,000

If the effective rate of the note is higher than the nominal rate, the initial amount of the note will result into a discount.Group of answer choicesTrueFalse

Notes receivable is supported by a promissory note.Group of answer choicesTrueFalse