On April 12, Hong Company agrees to accept a 60-day, 10%, $4,500 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 $4,500; credit Accounts Payable $4,500.

Debit Accounts Payable $4,500; credit Notes Payable $4,500.

Debit Accounts Receivable $4,500; credit Notes Payable $4,500.

Debit Cash $4,500; credit Notes Payable $4,500.

Debit Sales $4,500; credit Notes Payable $4,500.