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

question 108

Multiple Choice

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

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Definitions:

Cash Payments

Cash payments are transactions in which money is transferred from one party to another to settle a debt or purchase goods or services.

Credit Sales

Sales where the customer is allowed to make payment at a later date, extending credit to the buyer.

Cash Received

The physical or electronic receipt of money from transactions, such as sales, debt collections, or asset disposals.

Total Sales

The total revenue generated from the sale of goods or services before any deductions, such as returns or discounts.