On November 1, Orpheum Company accepted a $10,000, 90-day, 8% note from a customer settle an account. What entry should be made on November 1 to record the acceptance of the note?
A. Debit Note Receivable $10,000; credit Accounts Receivable $10,000.
B. Debit Note Receivable $10,000; credit Sales $10,000.
C. Debit Sales $10,000; credit Accounts Receivable $10,000.
D. Debit Note Receivable $10,200; credit Accounts Receivable $10,000; credit Interest Revenue $200.
E. Debit Note Receivable $10,000; credit Cash $10,000.
Answer: A
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