A customer cannot pay their \$10,000 account receivable on time and offers a 120-day, 5% note instead. What journal entry should be made to reflect this change?

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

Answer: (B)