On October 21, a note is used to replace a $5,000 overdue account payable that does not bear interest. The customer agrees to pay $1,000 cash and sign a 60-day, 10% note to replace the account payable.

The customers entry to record this transaction would be:

Question 1 options:

	Accounts payable dr 5,000, Notes payable 5,000 cr
	Accounts payable dr 5,000 Cash 5,000 cr
	Accounts payable dr 5,000 Cash 1,000 cr Notes payable 4,000 cr
	none of them