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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Definitions:

Temporal Lobe

A region of the brain responsible for processing auditory information, as well as managing memory and emotion.

Lateral Fissure

A deep groove in the brain that separates the temporal lobe from the frontal and parietal lobes.

Longitudinal Fissure

The deep groove that separates the two hemispheres of the brain.

Central Fissure

A deep groove in the brain's cortex that separates the frontal lobe from the parietal lobe.