Meyer, Inc., issued a $50,000, 120-day, noninterest-bearing note on November 1, 2018, payable to the...
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Accounting
Meyer, Inc., issued a $50,000, 120-day, noninterest-bearing note on November 1, 2018, payable to the bank. At the date of discount, the bank's discount rate was 15 percent.Myer would prepare which of the following journal entries on December 31, 2018?
a) Interest Expense 1,250 Discount on Notes Payable 1,250
b) Interest Expense 1,250 Cash 1,250
c) Interest Expense 1,250 Interest Payable 1,250
d)Interest Payable 1,250 Discount on Notes Payable 1,250
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