Wallah Company Agreed to Accept $5,000 in Cash Along with an $8,000

Multiple Choice

Wallah Company agreed to accept $5,000 in cash along with an $8,000, 90-day, 13.5% note from customer Judith Klemper to settle her $13,000 past-due account. How should Wallah record this transaction?

A) $\begin{array} { | l | r | r | } \hline \text { Accounts Receivable - J. Klemper } & 13,000 & \\\hline \text { Note Receivable } & & 8,000 \\\hline \text { Cash } & & 5,000 \\\hline\end{array}$
B) $\begin{array} { | c | r | r | } \hline \text { Note Receivable } & 8,000 & \\\hline \text { Sales } & & 8,000 \\\hline\end{array}$
C) $\begin{array} { | l | r | r | } \hline \text { Cash } & 5,000 & \\\hline \text { Note Receivable } & 8,000 & \\\hline \text { Sales } & & 13,000 \\\hline\end{array}$
D) $\begin{array} { | l | r | r | } \hline \text { Cash } & 5,000 & \\\hline \text { Note Receivable } & 8,000 & \\\hline \multicolumn{1}{|c|} { \text { Account Receivable - J. Klemper } } & & 13,000 \\\hline\end{array}$
E) $\begin{array} { | l | r | r | } \hline \text { Sales } & 13,000 & \\\hline \text { Note Receivable } & & 8,000 \\\hline \text { Cash } & & 5,000 \\\hline\end{array}$