The "discount on bonds payable" account is __________when a bound sells at discount. The "premium on bond payable" is ____________ when a bond sells a premium.

Question

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When a bond is sold at a discount, the "discount on bonds payable" account is debited to reflect the reduction in the bond's carrying value. Conversely, when a bond is sold at a premium, the "premium on bonds payable" account is credited to reflect the increase in the bond's carrying value.

The "Discount on Bonds Payable" Account Is __________When a Bound