Martin Company Needs Additional Time to Pay Its Accounts Payable

question 23

Multiple Choice

Martin Company needs additional time to pay its accounts payable to Boster Company. Martin makes a written promise to pay Boster the amount on a certain date. Martin records this transaction as follows:

• A) debit Notes Payable; credit Accounts Payable.
• B) debit Cash; credit Accounts Payable.
• C) debit Accounts Payable; credit Notes Payable.
• D) debit Notes Payable; credit Cash.

---

Definitions:

Dinner Special

A unique or discounted meal offered by a restaurant, typically for a limited time or occasion, often to attract customers or showcase new dishes.

Optimal Decision

The most efficient, profitable, or desirable decision given the available information, resources, and constraints.

Entree

The main dish of a meal.

Willingness-to-pay

The maximum amount an individual is prepared to expend on a good or service to procure it, reflecting the value the individual places on it.