Question

Jeff Company issues a promissory note to David Company to get extended time on an account payable. David records this transaction by debiting

A. Notes Receivable and crediting Accounts Receivable.

B. Notes Payable and crediting Accounts Payable.

C. Accounts Receivable and crediting Notes Receivable.

D. Accounts Payable and crediting Notes Payable.

Answer 1

C. Accounts Receivable and crediting Notes Receivable.

Answer 2

Jeff Company issues a promissory note to David Company to get extended time on an account payable. David records this transaction by debiting Accounts Payable and crediting Notes Payable.

Hope this helps!!