On April 12,Hong Company Agrees to Accept a 60-Day,10%,$4,500 Note

question 88

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

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