J.P.Industries purchased Yang's notes for $143,375 as a long-term investment.The investment is classified as available-for-sale.J.P.'s entry to record the purchase transaction would include a:
A)Credit to Short-Term Investments-AFS for $143,375.
B)Credit to Long-Term Investments-AFS for $143,375.
C)Credit to Notes Payable for $143,375.
D)Debit to Equity Investments-AFS for $143,375.
E)Debit to Debt Investments-AFS for $143,375.

Question

Quizplus · Accepted Answer

The purchase of Yang's notes as a long-term investment classified as available-for-sale would be recorded with a debit to Debt Investments-AFS for $143,375, reflecting the acquisition of the debt security.

JPIndustries Purchased Yang's Notes for $143,375 as a Long-Term Investment