On December 1,Watson Enterprises Signed a $24,000,60-Day,4% Note Payable as Replacement

Multiple Choice

On December 1,Watson Enterprises signed a $24,000,60-day,4% note payable as replacement of an account payable with Erikson Company.What is the journal entry that should be recorded upon signing the note?

A) Debit Accounts Receivable $24,000;credit Notes Receivable $24,000
B) Debit Accounts Payable $24,000;credit Notes Payable $24,000
C) Debit Accounts Payable $24,160;credit Notes Payable $24,160
D) Debit Notes Payable $24,000;debit Interest Expense $160;credit Accounts Payable $24,160
E) Debit Notes Payable $24,000;debit Interest Expense $160;credit Cash $24,160