Answer:
C. Debit to cash
D. Credit to notes receivable
Explanation:
When a company received money for previous sales, the following entry is required -
Debit Cash XXXX
Credit Accounts/Notes receivable XXXX
In that case, as Davis sold Weber equipment with an agreement of notes because of long-term payment, they treated the sale as a note receivable. Whenever the subsequent payment occurred, the entry to record the journal -
Debit to cash and Credit to notes receivable. Therefore, options C and D are both correct.
