Hughes Aircraft sold a four-passenger airplane for $380,000,receiving a $50,000 down payment and a 12% note for the balance.This transaction would include a:

Question

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A debit to Notes Receivable is necessary because the buyer owes Hughes Aircraft the remaining balance of the sale price. A credit to Cash would only be made for the amount of the down payment, and a debit to Sales Discount would only be made if there was a discount offered for early payment.

Hughes Aircraft Sold a Four-Passenger Airplane for $380,000,receiving a $50,000