Major Company borrowed $12,000 by signing an 8% interest-bearing 45-day note payable to replace an overdue accounts payable.To record this transaction,Major Company should prepare a journal entry that includes a
A) credit to Accounts Payable for $12,000.
B) credit to Notes Payable for $12,000.
C) debit to Cash for $12,000.
D) debit to Notes Payable for $12,000.
E) debit to Cash for $12,300.
Correct Answer:
Verified
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