Acme Manufacturing retired an issue of bonds before they matured. The bonds had been issued at their face value of $$500,000,$ and the cash paid for the retirement amounted to $$503,250.$ What journal entry was made to record the bond retirement?

Multiple Choice

Debit Bonds Payable for $$500,000,$ debit Loss on Bond Retirement for $$3,250,$ and credit Cash for $$503,250$

Debit Bonds Payable for $$503,250,$ credit Gain on Bond Retirement for $$3,250,$ and credit Cash for $$500,000$

Debit Bonds Payable and credit Cash for $$503,250$

Debit Bonds Payable for $$500,000,$ debit Gain on Bond Retirement for $$3,250,$ and credit Cash for $$503,250$