On April 12, Hong Company Agrees to Accept a 60-Day

question 43

Multiple Choice

On April 12, Hong Company agrees to accept a 60-day, 10%, $4,500 note from Indigo Company to extend the due date on an overdue account.
-What is the journal entry needed to record the transaction by Indigo Company?

• A) Debit Notes Payable $4,500; credit Accounts Payable $4,500.
• B) Debit Sales $4,500; credit Notes Payable $4,500.
• C) Debit Accounts Payable $4,500; credit Notes Payable $4,500.
• D) Debit Cash $4,500; credit Notes Payable $4,500.
• E) Debit Accounts Receivable $4,500; credit Notes Payable $4,500.

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Pyramid

A structure or concept that is shaped or organized in a way that resembles a geometric pyramid, often representing hierarchical layers.

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A program in the United States that provides comprehensive education, health, nutrition, and parent involvement services to low-income children and their families.

Co-Founder

An individual who jointly starts a company, enterprise, or organization with one or more partners.

Ira J. Gordon

A professional whose contributions or theories have influenced the fields of childhood education or developmental psychology, but further specific details are required for accurate definition.