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Customer to settle a past-due account

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On November 1, Orpheum Company accepted a $12,500, 90-day, 33% note from a customer to settle a past-due account. What entry should be made on November 1 to record the note acceptance?

  • Debit Note Receivable $12,500; credit Cash $12,500.
  • Debit Note Receivable $12,500; credit Accounts Receivable $12,500.
  • Debit Note Receivable $12,500; credit Sales $12,500.
  • Debit Cash $12,500; credit Sales $12,500.
  • Debit Sales $12,500; credit Accounts Receivable $12,500.

Reference no: EM131768950

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