Jasper makes a $78,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the transaction should be:
A. Debit Notes Payable $78,000; credit Accounts Payable $78,000.
B. Debit Notes Receivable for $78,000; credit Cash $78,000.
C. Debit Accounts Receivable $78,000; credit Notes Receivable $78,000.
D. Debit Cash $78,000; credit Notes Receivable for $78,000.
E. Debit Notes Receivable $78,000; credit Sales $78,000.
Answer: B
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