Accrued interest was recorded annually.On December 31,20C,the due date of the note,Bennett paid the amount due and recorded the transaction with which of the following?
A)A debit to notes payable for $400,000.
B)A debit to notes payable for $317,520.
C)A credit to notes payable for $400,000.
D)A credit to notes payable for $317,520.

Question

Quizplus · Accepted Answer

The note's principal amount is $400,000, so on the due date, Bennett would debit Notes Payable for $400,000 to remove the liability from the books.

Accrued Interest Was Recorded Annually