The journal entry to record accrued interest on a short-term note payable must include a:
A) debit to Note Payable
B) debit to Interest Expense
C) credit to Interest Expense
D) debit to Interest Payable

Question

Quizplus · Accepted Answer

Accrued interest on a short-term note payable is recorded by debiting Interest Expense to recognize the cost of borrowing for the period and crediting Interest Payable to acknowledge the liability for the interest that has accrued but not yet been paid.

The Journal Entry to Record Accrued Interest on a Short-Term