What Is the Debtor's Entry to Record a Note Paid

question 114

Multiple Choice

What is the debtor's entry to record a note paid, with interest accrued in the previous year (assume there is a reversing entry) ?

• A) Debit Cash; credit Interest Receivable; credit Notes Receivable; credit Interest Income
• B) Debit Notes Payable; debit Interest Expense; debit Interest Payable; credit Cash
• C) Debit Cash; credit Interest Income; credit Notes Receivable
• D) Debit Notes Payable; debit Interest Expense; credit Cash

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Definitions:

Education Expenses

Costs associated with education, including tuition, books, and supplies, among others.

Interest Rate

The cost of borrowing money or the return on investment for savings and loans, usually expressed as a percentage.

Income Loss

Refers to a decrease in earnings or revenue, often due to unexpected events, market changes, or operational failures.

Interest Rates

The cost of borrowing money, expressed as a percentage of the amount borrowed, or the return on investment for savings and loans.