7.

When a borrower receives the face amount of a discounted note less the discount, the amount is known as the

a. note proceeds

b. note principal

c. note deferred interest

d. note discount

8.The journal entry to record the issuance of a note for the purpose of converting an existing account payable would be

a. debit Accounts Payable; credit Notes Payable

b. debit Cash; credit Accounts Payable

c. debit Cash; credit Notes Payable

d. debit Accounts Payable; credit Cash