The journal entry for accrued interest on a note payable includes:
A)debiting Interest Expense.
B)debiting Accrued Interest Payable.
C)crediting Interest Expense.
D)debiting Accrued Interest Receivable.

Question

Quizplus · Accepted Answer

Accrued interest on a note payable increases the interest expense for the borrower, so Interest Expense is debited to reflect the cost incurred during the period.

The Journal Entry for Accrued Interest on a Note Payable