Buyer Company Asks to Extend Its Past Due $600 Account

Buyer Company asks to extend its past due $600 account payable to Seller Company. Seller Company agrees to accept $100 cash and a 60-day, 12%, $500 note payable to replace the account payable. How does Buyer Company record this event in the general journal?

A) $\begin{array}{|l|r|r|}\hline \text { Accounts Payable } & 600 & \\\hline \text { Cash } & & 100 \\\hline \text { Notes Payable } & & 500 \\\hline\end{array}$ 00 Notes Payableompany record this event in the general journal?
B) $\begin{array}{|l|r|l|}\hline \text { Notes Payable } & 500 & \\\hline \text { Cash } & 100 & \\\hline \text { Accounts Payable } & & 600 \\\hline\end{array}$
C) $\begin{array}{|l|r|r|}\hline \text { Cash } & 100 & \\\hline \text { Accounts Payable } & & 100 \\\hline\end{array}$
D) $\begin{array}{|c|r|r|}\hline \text { Accounts Payable } & 100 & \\\hline \text { Cash } & & 100 \\\hline\end{array}$
E) Buyer Company has no entry to record for this transaction.