Kizspy | Question: 37
(Choose 1 answer)
On December 1, Jane signed a $25,000, 60-day, 4% note payable as replacement of an account payable with
PwC Company. What is the journal entry that should be recorded upon signing the note?
A. Debit Accounts Receivable $25,000; credit Notes Receivable $25,000
B. Debit Accounts Payable $25,000; credit Notes Payable $25,000
C. Debit Accounts Payable $26,000; credit Notes Payable $26,000
D. Debit Notes Payable $25,000; debit Interest Expense $1,000; credit Accounts Payable $26,000
E. Debit Notes Payable $25,000; debit Interest Expense $1,000; credit Cash $26,000
