QUESTION 8 The journal entry used to record the payment of a discounted note is a. debit Notes Payable; credit Cash O b. debit Accounts Payable; credit Cash c. debit Cash; credit Notes Payable d. debit Notes Payable and Interest Expense; credit Cash
Answer
Answer: Option A) Debit : Notes Payable Credit: Cash
The Journal entry to record the Notes is Case should be Credit since we lose the Cash, debit should be Notes Payable since our Liability will be redeemed.