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, it debits (increases) notes payable and interest expense to record the reduction of the liability and the expense incurred, respectively.

When a Corporation Pays a Note Payable and Interest