buyer company asks to extend its past due 860 account buyer company asks to extend i 4138430
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