When bonds are issued at a discount, the bonds payable account is credited for the proceeds from the issue.

Name: When bonds are issued at a discount, the bonds payable account is credited for the proceeds from the issue.
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When bonds are issued at a discount, the proceeds from the issue are less than the face value of the bonds. The bonds payable account is credited for the proceeds from the issue, and the difference between the proceeds and the face value is recorded as a discount on bonds payable.

When Bonds Are Issued at a Discount, the Bonds Payable