On July 9, Mifflin Company Receives a $8,500, 90-Day, 8

Multiple Choice

On July 9, Mifflin Company receives a $8,500, 90-day, 8% note from overdue customer Payton Summers as payment on account. What entry should be made on July 9 to record receipt of the note?

A) Debit Accounts Receivable $8,500; credit Sales $8,500.
B) Debit Notes Receivable $8,670; credit Sales $8,670.
C) Debit Notes Receivable $8,500; credit Accounts Receivable $8,500.
D) Debit Notes Receivable $8,500; credit Sales $8,500.
E) Debit Notes Receivable $8,725; credit Interest Revenue $225; credit Accounts Receivable $8,500.