Which of the following statements is true regarding discount notes?
A)They are recorded in the account "notes payable" at more than face value on the day of issue.
B)They are recorded in the account "notes payable" at face value on the day of issue.
C)They are recorded in the account "notes payable" at less than face value on the day of issue.
D)They are not recorded until the maturity date.

Question

Quizplus · Accepted Answer

When issued,the face value of the discount note is recorded in the notes payable account and the amount of the discount is recorded in the discount on notes payable account.

Which of the Following Statements Is True Regarding Discount Notes