Cory issued a note to his creditor in exchange for an account.Cory records the transaction as follows:
A)debit Notes Payable;credit Accounts Payable.
B)debit Notes Receivable;credit Accounts Receivable.
C)debit Accounts Payable;credit Notes Payable.
D)debit Accounts Receivable;credit Notes Payable.

Question

Quizplus · Accepted Answer

Cory is exchanging an account payable for a note payable, so he debits Accounts Payable to decrease it and credits Notes Payable to increase it.

Cory Issued a Note to His Creditor in Exchange for an Account.Cory