On November 1, Orpheum Company accepted a $12,500, 90-day, 33% note from a customer to settle a past-due account. What entry should be made on November 1 to record the note acceptance?
Debit Note Receivable $12,500; credit Cash $12,500.
Debit Note Receivable $12,500; credit Accounts Receivable $12,500.
Debit Note Receivable $12,500; credit Sales $12,500.
Debit Cash $12,500; credit Sales $12,500.
Debit Sales $12,500; credit Accounts Receivable $12,500.