On May 28, Jackson Jones borrowed $40,000 cash and gave the lender a 5%, 90...
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Accounting
On May 28, Jackson Jones borrowed $40,000 cash and gave the lender a 5%, 90 day note. Which of the following is the correct journal entry to record the payment of the note on the maturity date?
1. CASH PAYMENT OF 39,500
2. INTEREST EXPENSE OF 2,000 SHOULD BE RECORDED
3. INTEREST EXPENSE OF 500 SHOULD BE RECORDED
4. INTEREST REVENUE OF 2,000 SHOULD BE RECORDED
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