To record the accrued interest on a note payable at the end of the accounting period,a journal entry should be written to credit:
A)Cash.
B)Interest Payable.
C)Notes Payable.
D)Interest Expense.

Question

Quizplus · Accepted Answer

Interest Payable is credited to record the obligation to pay the accrued interest on a note payable at the end of the accounting period. Interest Expense is debited to reflect the cost of borrowing for the period.

To Record the Accrued Interest on a Note Payable at the End