On April 12, Hong Company agrees to accept a 60-day, 10%, $5,700 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?

Choices:

• Debit Notes Payable $5,700; credit Accounts Payable $5,700.

• Debit Accounts Receivable $5,700; credit Notes Payable $5,700.

• Debit Cash $5,700; credit Notes Payable $5,700.

• Debit Sales $5,700; credit Notes Payable $5,700.

• Debit Accounts Payable $5,700; credit Notes Payable $5,700.