On May 22, Jarrett Company Borrows $7,500 from Fairmont Financing

Multiple Choice

On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a 90-day, 8%, $7,500 note.
- What is the journal entry needed to record the transaction by Jarrett Company?

A) Debit Cash $7,500; credit Notes Payable $7,500.
B) Debit Notes Receivable $7,500; credit Cash $7,500.
C) Debit Cash $7,650; credit Notes Payable $7,650.
D) Debit Accounts Payable $7,500; credit Notes Payable $7,500.
E) Debit Cash $7,500; credit Accounts Payable $7,500.