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18. On August 20, Walter Manufacturing Ltd agrees to exchange its accounts payable for a 90-day, 12%, $8,000 note from Fidalgo Company. What is the journal entry made by Fidalgo Company to record the transaction? a. Debit Notes Payable $8,000; credit Accounts Payable $8,000. b. Debit Accounts Receivable $8,000; credit Notes Payable $8,000. Debit Sales $8,000; credit Notes Payable $8,000. C. d. Debit Cash $8,000; credit Notes Payable $8,000. e. Debit Accounts Payable $8,000; credit Notes Payable $8,000.

18. On August 20, Walter Manufacturing Ltd agrees to exchange its accounts payable for a 90-day, 12%, $8,000 note from Fidalgo Company. What is the journal entry made by Fidalgo Company to record the transaction? a. Debit Notes Payable $8,000; credit Accounts Payable $8,000. b. Debit Accounts Receivable $8,000; credit Notes Payable $8,000. Debit Sales $8,000; credit Notes Payable $8,000. C. d. Debit Cash $8,000; credit Notes Payable $8,000. e. Debit Accounts Payable $8,000; credit Notes Payable $8,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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18. On August 20, Walter Manufacturing Ltd agrees to exchange its accounts payable for a 90-day, 12%, $8,000 note from Fidalgo Company. What is the journal entry made by Fidalgo Company to record the transaction? a. Debit Notes Payable $8,000; credit Accounts Payable $8,000. b. Debit Accounts Receivable $8,000; credit Notes Payable $8,000. C. Debit Sales $8,000; credit Notes Payable $8,000. d. Debit Cash $8,000; credit Notes Payable $8,000. e. Debit Accounts Payable $8,000; credit Notes Payable $8,000.
Transcribed Image Text:18. On August 20, Walter Manufacturing Ltd agrees to exchange its accounts payable for a 90-day, 12%, $8,000 note from Fidalgo Company. What is the journal entry made by Fidalgo Company to record the transaction? a. Debit Notes Payable $8,000; credit Accounts Payable $8,000. b. Debit Accounts Receivable $8,000; credit Notes Payable $8,000. C. Debit Sales $8,000; credit Notes Payable $8,000. d. Debit Cash $8,000; credit Notes Payable $8,000. e. Debit Accounts Payable $8,000; credit Notes Payable $8,000.
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