note on December 1, Greeson Corp. signed a three-month, zero-interest-bearing 2014 for the purchase of $250,000 of inventory. The face value of the note was $253,900. Assuming Greeson used a "Discount on Note Payable" account to initially record the note and that the discount will be amortized equally over the 3-month period, the adjusting entry made at December 31, 2014 will include a a. debit to Discount on Note Payable for $1,300. b. debit to Interest Expense for $2,600. c. credit to Discount on Note Payable for $1,300. d. credit to Interest Expense for $2,600.

note on December 1, Greeson Corp. signed a three-month, zero-interest-bearing 2014 for the purchase of $250,000 of inventory. The face value of the note was $253,900. Assuming Greeson used a "Discount on Note Payable" account to initially record the note and that the discount will be amortized equally over the 3-month period, the adjusting entry made at December 31, 2014 will include a a. debit to Discount on Note Payable for $1,300. b. debit to Interest Expense for $2,600. c. credit to Discount on Note Payable for $1,300. d. credit to Interest Expense for $2,600.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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