On April 12, Hong Company agrees to accept a 60-day, 10%, $5,700 note from Indigo...
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Accounting
On April 12, Hong Company agrees to accept a 60-day, 10%, $5,700 note from Indigo Company to extend the due date on an overdue account. What is the journal entry needed to record the transaction by Indigo Company?
Debit Sales $5,700; credit Notes Payable $5,700.
Debit Accounts Payable $5,700; credit Notes Payable $5,700.
Debit Notes Payable $5,700; credit Accounts Payable $5,700.
Debit Accounts Receivable $5,700; credit Notes Payable $5,700.
Debit Cash $5,700; credit Notes Payable $5,700.
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