A bank loaned Darden Company $10,000 on a 1-year, 6% note, but deducted the interest in advance.The journal entry made by Darden to record receipt of the cash would include a

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The interest on a $10,000 loan at 6% for one year is $600. If the bank deducts the interest in advance, Darden receives $10,000 - $600 = $9,400. Therefore, the journal entry would include an increase in Cash for $9,400.

A Bank Loaned Darden Company $10,000 on a 1-Year, 6