Valley Spa purchased $7,800 in plumbing components from Tubman Co, Valley Spa Studios signed a 60-day, 10% promissory note for $7800 if the note is dishonored what is the journal entry to record the dishonored note?

A. Debit Accounts Receivable $7,930; debit Bad Debt Expense $130; credit Notes Receivable $7800

B. Debit Bad Debt Expense $7,930; credit Accounts Receivable $7,930

C. Debit Bad Debt Expense $7,800; credit Notes Receivable $7,800.

D. Debit Accounts Receivable- Valley Spa $7,800; credit notes receivable $7,800

E. Debit Accounts Receivable- Valley Spa $7,930, credit Interest Revenue $120; credit Notes Receivable $7800.

Thanks :)