The balance in the Debentures payable account is a credit of $50 000. The balance in the Discount on debentures payable account is a debit of $1 500. How much is the debenture carrying amount?
A)$50 000
B)$48 500
C)$51 500
D)$1 500

Question

Quizplus · Accepted Answer

The carrying amount of debentures is calculated by subtracting the discount on debentures payable from the debentures payable balance: $50,000 - $1,500 = $48,500.

The Balance in the Debentures Payable Account Is a Credit