Winkler Company borrows $85,000 and pledges its receivables as security. The journal entry to record this transaction would be:
A) Debit Cash of $85,000 and credit Accounts Receivable $85,000.
B) Debit Cash of $85,000 and credit Accounts Payable $85,000.
C) Debit Note Receivable $85,000 and credit Accounts Receivable $85,000.
D) Debit Cash $85,000 and credit Notes Payable $85,000.
E) Debit Accounts Receivable $85,000 and credit Notes Payable $85,000.
D) Debit Cash $85,000 and credit Notes Payable $85,000.
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