Which statement is not true when a long-term note is issued for cash plus some right or privilege?
A)The creditor will debit Discount on Notes Receivable at the end of the period.
B)The debtor will debit Discount on Notes Payable.
C)The creditor will credit Unearned Revenue.
D)The debtor will debit Unearned Revenue at the end of the period.

Question

Quizplus · Accepted Answer

When a long-term note is issued for cash plus some right or privilege, the creditor does not credit Unearned Revenue; instead, they recognize the note receivable and any associated discount or premium.

Which Statement Is Not True When a Long-Term Note Is