Buyer Company asks to extend Its past due $860 account payable to Seller Company. Seller Company agrees

Question:

Buyer Company asks to extend Its past due $860 account payable to Seller Company. Seller Company agrees to accept $230 cash and a 30-day. 9%. $630 note payable to replace the account payable. How does Buyer Company record this event in the general Journal?
Accounts payable ...................................... 630
a. Cash ............................................................................. 230
Notes payable ................................................................. 860
b. Cash ..................................................... 230
Accounts payable ............................................................ 230
c. ....................................... 230
Cash ........................................................................... 230
d. ...................................... 860
Cash .......................................................................... 230
Notes payable ............................................................... 630
Buyer Company has no entry to record for this transaction.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...