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Accrued Interest Was Recorded Annually

Question 2

Multiple Choice

Accrued interest was recorded annually. On December 31, 20X3, the due date of the note, Bennett paid the amount due and recorded the transaction with which of the following?


A) A debit to notes payable for $400,000.
B) A debit to notes payable for $317,520.
C) A credit to notes payable for $400,000.
D) A credit to notes payable for $317,520.

Correct Answer:

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