Michigan Company paid Wisconsin Company for merchandise with a $6,400, 90-day, 8% note dated May 10.
If Michigan Company pays the note at maturity, what entry should be made at that time?
A) Notes Payable 6,528
Interest Payable 128
Cash 6,400
B) Cash 6,528
Notes Payable 128
Interest Payable 6,400
C) Notes Payable 6,400
Interest Expense 128
Cash 6,528
D) Notes Payable 6,400
Interest Expense 128
Cash 6,272
Correct Answer:
Verified
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