A business repays the amount borrowed on a note with cash.Which of the following accounts is debited?
A) Cash
B) Accounts Payable
C) Notes Payable
D) Notes Receivable

Question

Quizplus · Accepted Answer

When a business repays the amount borrowed on a note with cash, the liability account associated with the note (Notes Payable) is decreased. In double-entry accounting, decreasing a liability account is done by debiting that account.

A Business Repays the Amount Borrowed on a Note with Cash.Which