Edison Corp. signed a three-month, zero-interest-bearing note on November 1 for the purchase of $150,000...
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Edison Corp. signed a three-month, zero-interest-bearing note on November 1 for the purchase of $150,000 of inventory. The face value of the note was $152,205. Assuming Edison used a Discount on Note Payable account to initially record the note and that discount will be amortized equally over the 3-month period, the adjusting entry made at December 31 (assuming no adjusting entry was made on November 30) is:
Group of answer choices:
DR Discount on Note Payable $735 CR Interest Expense $735
DR Interest Expense $1,470 CR Discount on Notes Payable $1,470
DR Interest Expense $735 CR Discount on Note Payable $735
DR Discount on Note Payable $1,470 CR Interest Expense $1,470
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