The amount of interest due on notes and bonds payable owed by the company is adjusted by

Question

Quizplus · Accepted Answer

The adjustment for interest due on notes and bonds payable is made by debiting Interest Expense and crediting Interest Payable. This reflects the amount owed by the company for interest on these types of liabilities. Debiting the Cost of Goods Sold or another expense account would not be appropriate as these accounts relate to the cost of producing goods, not interest expenses.

The Amount of Interest Due on Notes and Bonds Payable