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If a company takes out a loan, which of the following is the correct way to record the corresponding debit and credit: Debit the cash

If a company takes out a loan, which of the following is the correct way to record the corresponding debit and credit:

  1. Debit the cash account | Credit the loans payable account
  2. Credit the cash account | Debit the loans payable account
  3. Debit the loans payable account | Credit the cash account
  4. Credit the accounts receivable account | Debit the cash account

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