A Business Makes a Payment of $1,400 on a Note

question 147

Multiple Choice

A business makes a payment of $1,400 on a note payable.Which of the following journal entries would be recorded?

• A) Cash is credited and Notes Payable is debited for $1,400.
• B) Notes Payable is credited and Cash is debited for $1,400.
• C) Cash is credited and Financing Expense is debited for $1,400.
• D) Cash is debited and Financing Revenue is credited for $1,400.

---

Definitions:

Attachment

A file or document sent along with an email message or linked within digital communications.

Memos

Short for memorandum, a written message used in business communication to convey information or instructions within an organization.

Permanency

The state or quality of lasting or remaining unchanged indefinitely.

Appropriate Closing

A polite and fitting conclusion to a communication, such as a letter or email, often including a thank you or a summary statement.