Homework Answers
In this case the comanpany borrowed $900,000 on a bank note for 8 months. The bank discounts the note at 5%. Thie 5% of borrowed amount of $900,000 is $45,000. So the repayment amount will be with the discount Amount..
The Answer is B. Debit to discount on notes payable for $45,000.
here the discount amount is recorded as Debit to discount on notes payable.
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