alley Spa purchased $11,300 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 12% promissory note for $11,300. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.)

Multiple Choice

Debit Bad Debt Expense $11,526; credit Accounts Receivable $11,526.

Debit Accounts ReceivableValley Spa $11,300; credit Notes Receivable $11,300.

Debit Bad Debt Expense $11,300; credit Notes Receivable $11,300.

Debit Accounts ReceivableValley Spa $11,526, credit Interest Revenue $226; credit Notes Receivable $11,300.

Debit Accounts Receivable $11,526; debit Bad Debt Expense $226; credit Notes Receivable $11,300.