Pegasus Corp

question 47

Multiple Choice

Pegasus Corp.signed a three-month,zero-interest-bearing $253,315 note on November 1,2016 for the purchase of $250,000 of inventory.If Pegasus makes adjusting entries only at the end of the year,the adjusting entry made at December 31,2016 will include a ________.

• A)debit to Note Payable for $2,210
• B)debit to Interest Expense for $2,210
• C)credit to Note Payable for $2,210
• D)credit to Interest Expense for $2,210

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Definitions:

High Tariffs

Elevated taxes imposed on imported goods, aimed at protecting domestic industries from foreign competition.

Manufacturing Plants

Facilities where goods are produced in large quantities through the combination of workers, machinery, and processes.

Local Market

A market that exists within a specific geographical area, often characterized by face-to-face transactions and the availability of locally produced goods.

Abdominopelvic Cavity

A body cavity consisting of two connected spaces, the abdominal cavity and the pelvic cavity, housing major organs of digestion, reproduction, and excretion.