On January 1,Jewel Company buys $200,000 of Marcelo Corp.12%,36-month notes.Interest is paid on the last day of each month.The notes are classified as available-for-sale securities.This is the company's first and only investment in available-for-sale securities.On December 31,the notes have a fair value of $204,000.The journal entry on January 1 to record the investment is:
A) Debit Debt Investments - HTM,$200,000; Credit Cash,$200,000.
B) Debit Debt Investments - AFS,$200,000; Credit Cash,$200,000.
C) Debit Debt Investments - HTM,$204,000; Credit Cash,$204,000.
D) Debit Debt Investments - AFS,$204,000; Credit Cash,$204,000.
E) Debit Debt Investments - Trading,$200,000; Credit Cash,$200,000.
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