On November 10,Twister Rides issued a 14%,90-day,$15,000 promissory note.Twister should record the payment of the note on the maturity day as:

Question

Quizplus · Accepted Answer

The correct answer is C because the interest on the note is calculated as follows: $15,000 * 14% * (90/365) = $525. Therefore, on the maturity day, Twister should debit Notes Payable for the principal amount of $15,000, debit Interest Expense for the interest amount of $525, and credit Cash for the total payment of $15,525.

On November 10,Twister Rides Issued a 14%,90-Day,$15,000 Promissory Note