Acme,Inc.accepted a promissory note from NadirCo,who promised to pay Acme $5,000 plus 6% interest at the end of four months.When NadirCo first gives Acme the note,NadirCo should record a ________.

Question

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NadirCo should record a note payable of $5,000 because it is the amount they promised to pay Acme, excluding interest that will accrue over time. Interest is not recorded upfront in the note payable.

Acme,IncAccepted a Promissory Note from NadirCo,who Promised to Pay Acme