On May 1,2019,Mary Smith Signed a $10,000 Promissory Note with Continental

On May 1,2019,Mary Smith signed a $10,000 promissory note with Continental Bank.The note is due in one year with 7% interest.What journal entry should Continental Bank prepare on May 1,2019?

A) Debit Cash for $10,000 and credit Notes Payable for $10,000.
B) Debit Notes Receivable for $10,700 and credit Cash for $10,700.
C) Debit Notes Receivable for $10,000 and credit Cash for $10,000.
D) Debit Cash for $10,700 and credit Accounts Receivable for $10,700.

Correct Answer:

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