Jeff Company Issues a Promissory Note to David Company to Get

Multiple Choice

Jeff Company issues a promissory note to David Company to get extended time on an account payable. Jeff Company records this transaction as follows:

A) debit Accounts Receivable; credit Notes Receivable.
B) debit Notes Receivable; credit Accounts Receivable.
C) debit Notes Payable; credit Accounts Payable.
D) debit Accounts Payable; credit Notes Payable.