When a Note Is Received from a Customer to Obtain

question 37

Multiple Choice

When a note is received from a customer to obtain an extension of time for payment on a past-due account, the journal entry would include

• A) debiting Accounts Receivable and crediting Notes Receivable.
• B) debiting Accounts Payable and crediting Notes Payable.
• C) debiting Notes Payable and crediting Accounts Payable.
• D) debiting Notes Receivable and crediting Accounts Receivable.

---

Definitions:

Data

Data consists of facts, statistics, or items of information often used as a basis for analysis, discussion, or calculation.

Elementary Description

A basic and fundamental explanation or representation of a subject.

Transactions

Operations or exchanges between parties, often involving the transfer of goods, services, money, or information.

Knowledge

Information, understanding, and skills gained through education or experience; the theoretical or practical understanding of a subject.