On November 1, Orpheum Company accepted a $11,300, 90-day, 12% note from a customer to settle his account. What entry should be made on the November 1 to record the acceptance of the note?
A. Debit Note Receivable $11,300; credit Sales $11,300.
B. Debit Sales $11,300; credit Accounts Receivable $11,300.
C. Debit Note Receivable $11,300; credit Accounts Receivable $11,300.
D. Debit Note Receivable $11,639; credit Accounts Receivable $11,300; credit Interest Revenue $339.
E. Debit Note Receivable $11,300; credit Cash $11,300.
Answer: C
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