John borrowed $1,030 from Melanie. John promised in writing that he would repay the money to Melanie on April 21, 201X. At the time of the loan, Melanie records the transaction as a(n):
A) Accounts Receivable.
B) Accounts Payable.
C) Note Receivable.
D) Note Payable.

Question

Quizplus · Accepted Answer

Melanie would record the transaction as a Note Receivable because it is a written promise that she will receive payment from John on a specific date.

John Borrowed $1,030 from Melanie