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On April 12, Hong Company agrees to accept a 60-day, 10%, $8,700 note from Indigo Company to extend the due date on an overdue account.

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On April 12, Hong Company agrees to accept a 60-day, 10%, $8,700 note from Indigo Company to extend the due date on an overdue account. What is the journal entry that Indigo Company would make, when it records payment of the note on the maturity date? (Use 360 days a year.) Multiple Choice O Debit Notes Payable $8,700, credit interest Expense $145, Credit Cash $8,555. 0 O Debit Notes Payable $8,700; debit interest Expense $145 credit Cash $8,845 O Debit Cash $8,845; credit interest Revenue $145 credit Notes Payable $1,700 0 ) Debit Cash $8.845: credit interest Revenue $145. credit Notes Receivable 58,700 0 O Debit Notes Payable $8.700, debit interest Expense $218 credit Cash $8.918. 0

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