The Oven Store has a short-term note payable of $3,000. At maturity, the interest on the note is $200 and has not been accrued. The journal entry to record the payment of the note would include:
A)a debit to Note Payable for $3,000.
B)a credit to cash for $3,200.
C)a debit to interest expense for $200.
D)all of the above.

Question

Quizplus · Accepted Answer

The payment of the note requires the following entries:
1) Debit Note Payable for $3,000
2) Debit Interest Expense for $200
3) Credit Cash for $3,200 
Therefore, option D is the correct choice as it includes all the required entries.

The Oven Store Has a Short-Term Note Payable of $3,000