Buyer Company asks to extend Its past due 860 account

Buyer Company asks to extend Its past due $860 account payable to Seller Company. Seller Company agrees to accept $230 cash and a 30-day. 9%. $630 note payable to replace the account payable. How does Buyer Company record this event in the general Journal?

Accounts payable ……………………………….. 630

a. Cash ………………………………………………………………….. 230

Notes payable ……………………………………………………….. 860

b. Cash …………………………………………….. 230

Accounts payable …………………………………………………… 230

c. Accounts payable ………………………………… 230

Cash ………………………………………………………………… 230

d. Accounts payable ……………………………….. 860

Cash ……………………………………………………………….. 230

Notes payable ……………………………………………………… 630

Buyer Company has no entry to record for this transaction.

Buyer Company asks to extend Its past due 860 account