On August 1, Amy Company borrowed $40,000 from another company on a 6%, one-year note. The journal entry on December 31 would include which of the following?
A) A debit to Notes Payable for $40,000.
B) A debit to Interest Receivable for $1,000.
C) A credit to Interest Payable for $2,400.
D) A debit to Interest Expense for $1,000.
Correct Answer:
Verified
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