On August 1, Year 1 Hernandez Company loaned $48,000 cash to Acosta Company. The one-year note carried a 5% rate of interest. Which of the following journal entries would be required to recognize the collection of the principal balance in Year 2?
Account Titles Debit Credit
Notes Receivable 50,400
Cash 50,400
Account Titles Debit Credit
Cash 50,400
Notes Receivable 50,400
Account Titles Debit Credit
Notes Receivable 48,000
Cash 48,000
Account Titles Debit Credit
Cash 48,000
Notes Receivable 48,000