Question

question 17 (2.5 points) when a note is received from a customer to obtain an extension of time for payment on a past - due account, the journal entry would include: debiting accounts receivable and crediting notes receivable debiting accounts payable and crediting notes payable debiting notes payable and crediting accounts payable debiting notes receivable and crediting accounts receivable

Explanation:

When a customer gives a note for payment - extension on a past - due account, the company's Notes Receivable increase (debit) and Accounts Receivable decrease (credit) as the account receivable is converted into a note receivable.

Answer:

debits Notes Receivable and credits Accounts Receivable, so the correct option is: debiting Notes Receivable and crediting Accounts Receivable.