On April 12, Hong Company agrees to accept a 60-day, 10%, $5,200 note from Indigo Company to extend the due date on an overdue account payable. What is the journal entry made by Indigo Company to record the transaction?

Question

Answer

Debit Cash $5,200; credit Notes Payable $5,200.

Answer

Debit Sales $5,200; credit Notes Payable $5,200.

Answer

Debit Notes Payable $5,200; credit Accounts Payable $5,200.

Answer

Debit Accounts Payable $5,200; credit Notes Payable $5,200.

Answer

Debit Accounts Receivable $5,200; credit Notes Payable $5,200.

Crowdly

On April 12, Hong Company agrees to accept a 60-day, 10%, $5,200 note from Indig...

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