Martin Company Needs Additional Time to Pay Its Accounts Payable

question 39

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.Boster records this transaction as follows:

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

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