Valley Spa Purchased $7,800 in Plumbing Components from Tubman Co

Valley Spa purchased $7,800 in plumbing components from Tubman Co.Valley Spa Studios signed a 60-day,10% promissory note for $7,800.If the note is dishonored,what is the journal entry to record the dishonored note?

A) Debit Accounts Receivable $7,930;debit Bad Debt Expense $130;credit Notes Receivable $7,800.
B) Debit Bad Debt Expense $7,930;credit Accounts Receivable $7,930.
C) Debit Bad Debt Expense $7,800;credit Notes Receivable $7,800.
D) Debit Accounts Receivable-Valley Spa $7,800;credit Notes Receivable $7,800.
E) Debit Accounts Receivable-Valley Spa $7,930,credit Interest Revenue $130;credit Notes Receivable $7,800.