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An Entity Repays $2000 of an Existing Bank Loan

Question 42

Multiple Choice

An entity repays $2000 of an existing bank loan. The transaction is recorded as:


A) DR Bank loan $2000; CR Owner's capital $2000
B) DR Cash $2000; CR Accounts payable $2000
C) DR Cash $2000; CR Bank loan $2000
D) DR Bank loan $2000; CR Cash $2000

Correct Answer:

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