Bennett Industries purchased a large piece of equipment from Crumpet Company on January 2, 20X1. Bennett signed a note, agreeing to pay Crumpet $400,000 for the equipment on December 31, 20X3. The market rate of interest for similar notes was 8%. The present value of $400,000 discounted at 8% for three years is $317,520. On January 2, 20X1, Bennett recorded the purchase with a debit to equipment for $317,520 and a credit to notes payable for $317,520. Accrued interest was recorded annually. On December 31, 20X3, the due date of the note, Bennett paid the amount due and recorded the transaction with which of the following? Selected Answer: Incorrect A credit to notes payable for $400,000. Answers: Correct A debit to notes payable for $400,000. A debit to notes payable for $317,520. A credit to notes payable for $400,000. A credit to notes payable for $317,520