The entry to record interest expense on a bank loan payable is a
A) debit to interest expense and credit to note payable.
B) debit to note payable and credit to interest revenue.
C) debit to interest payable and credit to interest revenue.
D) debit to interest expense and credit to interest payable.

Question

Quizplus · Accepted Answer

Interest expense is recorded as a debit to interest expense and a credit to interest payable, reflecting the obligation to pay interest.

The Entry to Record Interest Expense on a Bank Loan