On April 1, 2022, Aggie Company borrowed $120,000 on a bank note for 7 months. The bank discounted the note at 4%. The entry to record the payment of this note on October 31, 2022 would include a

On April 1, 2022, Aggie Company borrowed $120,000 on a bank note for 7 months. The bank discounted the note at 4%. The entry to record the payment of this note on October 31, 2022 would include a

credit to discount for $2,800

debit to interest payable for $2,800

credit to cash for $117,200

debit to interest expense for $4,800

credit to note payable for $120,000