Brian IncBorrowed $8,000 from First Bank and Signed a Promissory Note

question 29

Multiple Choice

Brian Inc.borrowed $8,000 from First Bank and signed a promissory note.What entry should First Bank record?

• A)Debit Cash,$8,000; Credit Notes Receivable,$8,000.
• B)Debit Notes Receivable,$8,000; Credit Cash,$8,000.
• C)Debit Cash,$8,000; Credit Notes Payable,$8,000.
• D)Debit Notes Payable,$8,000; Credit Cash,$8,000.

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Definitions:

Special Order

A one-time customer order for a product or service, often requiring a unique set of specifications or considerations outside regular offerings.

Idle Capacity

Unused or underused production capability, which occurs when a business has more resources available than is required to maintain its current level of production.

Traced Costs

Direct costs, such as materials and labor, that can be directly linked to the production of specific products or services.

Drop the Product

The decision to discontinue the production and sale of a particular product, often due to low demand or profitability.