Martin Company Needs Additional Time to Pay Its Accounts Payable

Martin Company needs additional time to pay its accounts payable to Boster Company. Martin makes a written promise to pay Boster the amount on a certain date. Martin records this transaction as follows:

A) debit Notes Payable; credit Accounts Payable.
B) debit Cash; credit Accounts Payable.
C) debit Accounts Payable; credit Notes Payable.
D) debit Notes Payable; credit Cash.

Correct Answer:

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