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Greeson Corp. signed a three-month, zero-interest-bearing note on November 1, 2020 for the purchase of $500,000 of inventory. The face value of the note
Greeson Corp. signed a three-month, zero-interest-bearing note on November 1, 2020 for the purchase of $500,000 of inventory. The face value of the note was $507,800. Greeson used a "Discount of Note Payable" account to initially record the note. Assuming that the discount will be amortized equally over the 3-month period and that there was no adjusting entry made for November, the adjusting entry made at December 31, 2020 will include a Select one: O A. debit to Interest Expense for $5,200. OB. credit to Discount on Note Payable for $2,600. O C. debit to Discount on Note Payable for $2,600. OD. credit to Interest Expense for $5,200. Next page
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