On April 12, Hong Company agrees to accept a 60-day, 10%, $6,400 note from Indigo Company to extend the due date on an overdue account payable. What is the journal entry made by Indigo Company to record the transaction?

A) Debit Accounts Receivable $6,400; credit Notes Payable $6,400. B) Debit Cash $6,400; credit Notes Payable $6,400. C) Debit Notes Payable $6,400; credit Accounts Payable $6,400. D) Debit Sales $6,400; credit Notes Payable $6,400. E) Debit Accounts Payable $6,400; credit Notes Payable $6,400.