Paoli Pizza Bought $5,000 Worth of Merchandise from TechCom and Signed

Multiple Choice

Paoli Pizza bought $5,000 worth of merchandise from TechCom and signed a 90-day, 10% promissory note for the $5,000. TechCom's journal entry to record the sales portion of the transaction is:

A) Debit Accounts Receivable $5,000; credit Sales $5,000.
B) Debit Notes Receivable $5,000; credit Sales $5,000.
C) Debit Accounts Receivable $5,125; credit Sales $5,125.
D) Debit Notes Receivable $5,125; credit Sales $5,125.
E) Debit Notes Receivable $5,000; debit Interest Receivable $125; credit Sales $5,125.