If a company would like to repay a bank loan of $7,000,the bookkeeper would
A)debit Cash and credit Notes Receivable for $7,000.
B)debit Notes Receivable and credit Cash for $7,000.
C)debit Cash and credit Accounts Payable for $7,000.
D)debit Cash and credit Notes Payable for $7,000.
E)debit Notes Payable and credit Cash for $7,000.

Question

Quizplus · Accepted Answer

When repaying a bank loan, the company reduces its liability by debiting Notes Payable and decreases its cash by crediting Cash.

If a Company Would Like to Repay a Bank Loan