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

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.