When recording a mortgage payment made by a borrower, the borrower will:
A) debit cash, and credit interest expense.
B) debit mortgage payable, and credit interest expense.
C) debit both interest expense and mortgage payable, and credit cash.
D) debit cash, and credit both interest expense and mortgage payable.

Question

Quizplus · Accepted Answer

As each mortgage payment is made up of both interest and principal, when recording a mortgage payment a borrower must debit both interest expense and mortgage payable, and credit cash.

When Recording a Mortgage Payment Made by a Borrower, the Borrower