When a Note Is Received from a Customer to Obtain

Multiple Choice

When a note is received from a customer to obtain an extension of time for payment on a past-due account, the journal entry would include

A) debiting Accounts Receivable and crediting Notes Receivable.
B) debiting Accounts Payable and crediting Notes Payable.
C) debiting Notes Payable and crediting Accounts Payable.
D) debiting Notes Receivable and crediting Accounts Receivable.