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.

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