Pine Bark, Inc. borrows $10,000 from Fifth Bank. Pine Barks journal entry when the funds are received is:

No journal entry is required.

Debit Cash $10,000 and credit Notes Receivable $10,000.

Debit Notes Payable $10,000 and credit Cash $10,000.

Debit Cash $10,000 and credit Notes Payable $10,000.

I do not know the answer.