Plunder Inc $\begin{array}{|l|r|l|}\hline \text { Notes receivable } & 2,500 & \\\hline \text { Accounts receivable } & & 2,500 \\\hline\end{array}$

Plunder Inc. accepted a six-month noninterest-bearing note for $2,800 on January 1, 2018. The note was accepted as payment of a delinquent receivable of $2,500. What is the correct entry to record the note?

A) $\begin{array}{|l|r|l|}\hline \text { Notes receivable } & 2,500 & \\\hline \text { Accounts receivable } & & 2,500 \\\hline\end{array}$
B) $\begin{array}{|l|r|r|}\hline \text { Notes receivable } & 2,800 & \\\hline \text { Accounts receivable } & & 2,500 \\\hline \text { Discount on note receivable } & & 300 \\\hline\end{array}$
C) $\begin{array}{|l|r|r|}\hline \text { Notes receivable } & 2,800 & \\\hline \text { Reserve for delinquent accounts } & & 2,500 \\\hline \text { Allowance for bad debts } & & 300 \\\hline\end{array}$
D) $\begin{array}{|l|r|r|}\hline \text { Notes receivable } & 2,800 & \\\hline \text { Accounts receivable } & & 2,500 \\\hline \text { Gain on delinquent account } & & 300 \\\hline\end{array}$