On February 15, Jewel Company buys notes of Marcelo Corp. for $201,010. The investment is classified as long-term available-for-sale securities. This is the company's first and only investment in available-for-sale securities. The journal entry to record the purchase on February 15 is:
A. Debit Long-Term Investments-AFS $201,010; credit Cash $201,010.
B. Debit Debt Investments-HTM $201,010; credit Cash $201,010.
C. Debit Debt Investments-Trading $201,010; credit Cash $201,010.
D. Debit Debt Investments-Trading $201,010; credit Notes Payable $201,010.
E. Debit Debt Investments-AFS $201,010; credit Notes Payable $201,010.
Answer: A
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