Foti Co. accepts a $1,000, 3-month, 12% promissory note in settlement of an account with Bartelt Co. The entry to record this transaction is as follows:

Foti Co. accepts a $1,000, 3-month, 12% promissory note in settlement of an account with Bartelt Co. The entry to record this transaction is as follows:

Foti Co. accepts a $1,000, 3-month, 12% promissory note in settlement of an account with Bartelt Co. The entry to record this transaction is as follows:





A. Notes Receivable 1,030/ Accounts Receivable 1,030
B. Notes Receivable 1,000/ Accounts Receivable 1,000
C. Notes Receivable 1,000/ Sales 1,000
D. Notes Receivable 1,020/ Accounts Receivable 1,020



Answer: B