A company converts a \$10,000 account receivable into a note receivable. What is the journal entry?

• A. Debit Accounts Receivable \$10,000; Credit Notes Receivable \$10,000
• B. Debit Notes Receivable \$10,000; Credit Cash \$10,000
• C. Debit Cash \$10,000; Credit Notes Receivable \$10,000
• D. Debit Notes Receivable \$10,000; Credit Accounts Receivable \$10,000

Answer: (D)