Snow White Company borrowed $72,000 from Bank of Fairytales on December 1, 2019, and signed a 90 day, 8% Notes Payable.
If Snow White's accounting period ends on December 31, 2019, which of the following will not be true for Snow White Company?
A) On December 31, 2019, Snow White will debit Interest Expense for $480
B) On December 31, 2019 Snow White, will credit Interest Payable for $480
C) On March 1, 2020, Snow White will debit Interest Expense for $960
D) On March 1, 2020, Snow White will debit Interest Payable for $960
Correct Answer:
Verified
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