Terrific Tubers Potato Farm needs cash until it sells and delivers its potato crop. Spud National Bank extends a $300,000, 6% loan to Terrific Tubers on December 1, 2018, for which Terrific Tubers signs a note payable. The loan agreement states that all principal and interest will be repaid on March 31, 2019. Terrific Tubers fiscal year ends on December 31.

Select the journal entry to record the note payable on December 1, 2018 for Terrific Tuber.

Question 9 options:

	Debit Notes Payable $300,000 Credit Cash $300,000
	Debit Cash $300,000 Credit Notes Receivable $300,000
	Debit Cash $318,000 Credit Notes Payable $318,000
	Debit Cash $300,000 Credit Notes Payable $300,000