On August 1, Amy Company borrowed $38,000 from another company on a 6%, one-year note. The journal entry that Amy would record on August 1 would include which of the following?
a. A debit to Notes Receivable for $38,000.
b. A credit to Cash for $38,000.
c. A credit to Notes Payable for $38,000.
d. A debit to Interest Expense for $2,220.

Question

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The Answer of On August 1, Amy Company borrowed $38,000 from another company on a 6%, one-year note. The journal entry that Amy would record on August 1 would include which of the following?
a. A debit to Notes Receivable for $38,000.
b. A credit to Cash for $38,000.
c. A credit to Notes Payable for $38,000.
d. A debit to Interest Expense for $2,220.

On August 1, Amy Company Borrowed $38,000 from Another Company