When a corporation pays a note payable and interest,
A) the account Notes Payable will be increased.
B) the account Interest Expense will be decreased.
C) they will debit Notes Payable and Interest Expense.
D) they will debit Cash.

Question

Quizplus · Accepted Answer

When a corporation pays a note payable and interest, they will debit Notes Payable to decrease the liability and debit Interest Expense to recognize the cost of borrowing.

When a Corporation Pays a Note Payable and Interest