Exhibit 7-1 Martin & Cox, Inc

Exhibit 7-1 Martin & Cox, Inc.accepted a $50, 000, 8%, 90-day note receivable for services rendered to a client.Thirty days later, Martin & Cox discounted the note at a bank at 10%.Assume interest has not been recognized for the first month.
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Refer to Exhibit 7-1.The entry to record the proceeds from the sale of the note would include a

A) debit to Notes Receivable for $50, 000
B) debit to Cash for $45, 000
C) credit to Interest Receivable for $333
D) credit to Interest Revenue for $333