Valley Spa purchased $10,800 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 8% promissory note for $10,800. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.) Debit Bad Debt Expense $10,800; credit Notes Receivable $10,800. Debit Bad Debt Expense $10,944; credit Accounts Receivable $10,944. Debit Accounts Receivable-Valley Spa $10,944, credit Interest Revenue $144; credit Notes Receivable $10,800. Debit Accounts Receivable-Valley Spa $10,800; credit Notes Receivable $10,800. Debit Accounts Receivable $10,944; debit Bad Debt Expense $144 credit Notes Receivable $10,800