Soles for Souls, Inc. borrows 2,000 from a bank on February 1, 2011 and agrees to pay it back two years later with 6 interest. On February 1, 2011, the entry recorded in the journal would include a ________.
A) credit to Notes receivable of 2,000
B) credit to Cash of 2,000
C) debit to Interest expense of 120
D) credit to Notes payable of 2,000
Question 2
Sales to customers who use bank credit cards, such as MasterCard and VISA, are generally treated as credit sales.
a. True
b. False
Indicate whether the statement is true or false
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