n Question 50 2 pts Cotton Corporation issued $500,000 of 7%, 10-year bonds on January 1, 2021 for $431,850 with semi annual interest payments on July 1 and January 1. The effective interest rate is 9%. The effective-interest method of amortization is to be used. The journal entry on the January 1, 2022 would include credit discount on bonds payable for 2,500 and credit cash for $20,000. debit bond interest payable $17,500 and credit cash $17,500. None of the answers are correct. debit bond interest expense $17,500 and credit cash $17,500.