Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the transaction should be:

Multiple Choice

• Debit Notes Payable $25,000; credit Accounts Payable $25,000.

• Debit Notes Receivable for $25,000; credit Cash $25,000.

• Debit Cash $25,000; credit Notes Receivable for $25,000.

• Debit Accounts Receivable $25,000; credit Notes Receivable $25,000.

• Debit Notes Receivable $25,000; credit Sales $25,000.