Question

The journal entry to record a note received from a customer to replace an account is A. debit Notes Receivable credit Accounts ReceivableB. debit Accounts Receivable credit Notes ReceivableC. debit Cash credit Notes ReceivableD. debit Notes Receivable credit Notes Payable

Answer 1

Answer:

A. debit Notes Receivable credit Accounts Receivable

Explanation:

The accounts receivable will be credited. This decrease account receivable thus, removing the customer account from there.

It will debit note receivable to represent the new plan of payment with the customer.

This are not payable, as the company is going to receive from the note, not pay.