A business borrowed $51,185 on March 1 of the current year by signing a 30 day, 8% interest bearing note. Assuming a 360-day year, when the note is paid on March 31, the entry to record the payment should include a
debit to Interest Payable for $341
debit to Interest Expense for $341
credit to Cash for $51,185
credit to Cash for $55,280
Get Answers For Free
Most questions answered within 1 hours.