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A business makes a payment of $1440 on a loan payable, consisting of a $110...

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Accounting

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A business makes a payment of $1440 on a loan payable, consisting of a $110 interest payment and a $1330 principal payment. Which of the following journal entries would be recorded? OA. Loan payable is credited for $1440, Cash is debited for $1330 and Interest expense is debited for $110. OB. Cash is credited for $1440, Loan payable is debited for $1330 and Interest expense is debited for $110. O C. Loan payable is credited for $1330, Cash is credited for $110 and Interest expense is debited for $1440. OD. Cash is credited for $1330, Interest expense is credited for $110 and Loan payable is debited for $1440

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