On May 22,Jarrett Company Borrows $7,500 from Fairmont Financing,signing a 90-Day,8%,$7,500

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