33. Valley Spa purchased $7,800 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 10% promissory note for $7,800. 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.)

    1. A) Debit Accounts ReceivableValley Spa $7,930, credit Interest Revenue $130; credit Notes Receivable $7,800.

    2. B) Debit Accounts Receivable $7,930; debit Bad Debt Expense $130; credit Notes Receivable $8,060.

    3. C) Debit Bad Debt Expense $7,930; credit Accounts Receivable $7,930.

    4. D) Debit Accounts ReceivableValley Spa $7,800; credit Notes Receivable $7,800.

    5. E) Debit Bad Debt Expense $7,800; credit Notes Receivable $7,800.