On April 12, Hong Company agrees to accept a 60-day, 10%, $4,900 note from Indigo Company to extend the due date on an overdue account. What is the journal entry needed to record the transaction by Indigo Company

Debit Notes Payable $4,900; credit Accounts Payable $4,900.

Debit Sales $4,900; credit Notes Payable $4,900.

Debit Accounts Payable $4,900; credit Notes Payable $4,900.

Debit Cash $4,900; credit Notes Payable $4,900.

Debit Accounts Receivable $4,900; credit Notes Payable $4,900.