Delivery Plus Discounts Its Own 120-Day, 8%, $40,000 Notes Receivable

question 16

Multiple Choice

Delivery Plus discounts its own 120-day, 8%, $40,000 notes receivable. It records the proceeds as: (Use a 360-day year. Do not round any intermediate calculations. Round your final answer to the nearest dollar.)

• A) debit Cash $38,933; debit Discounts on Notes Payable $1,067; credit Notes Payable $40,000.
• B) debit Cash $38,933; credit Discounts on Notes Payable $1,067; credit Notes Payable $40,000.
• C) debit Cash $36,800; debit Discount on Notes Payable $3,200; credit Notes Payable $40,000.
• D) debit Cash $38,933; credit Notes Payable $38,933.

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Definitions:

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