The entry that should be made by Orpheum on November 1 to record the acceptance of the note is :
Debit Note Receivable $11,400; credit Accounts Receivable $11,400
The journal entry to record the transaction contains a credit to sales and a debit to notes receivable when a sale is made but no cash is received (instead, a promise to pay in the future, or a note receivable, is delivered). The balance sheet includes notes receivable as an asset.
In this instance, the sale was completed and was reflected as an accounts receivable. However, a note receivable with the same face amount afterward took the place of the accounts receivable. In order to reverse the entry, a credit would need to be made to accounts receivable, and a debit would need to be made to notes receivable. This journal entry shows an increase in notes payable and a decrease in accounts receivable.
So the answer is Debit Note Receivable $11,400; credit Accounts Receivable $11,400
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