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Major Company borrowed $12,000 by signing an 8% interest-bearing 45-day note payable to replace an overdue accounts payable. To record this transaction, Major Company should

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Major Company borrowed $12,000 by signing an 8% interest-bearing 45-day note payable to replace an overdue accounts payable. To record this transaction, Major Company should prepare a journal entry that includes a Ob debit to Cash for $12,000 credit to Accounts Payable for $12,000 debit to Notes Payable for 512,000 credit to Notes Payable for $12,000

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