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A business borrowed $51,873 on March 1 of the current year by signing a 30 day, 6% interest bearing note. Assuming a 360-day year, when the note is paid on March 31, the entry to record the payment should include a

User Satoko
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1 Answer

1 vote

Answer:

Debit to interest expenses for $259

Step-by-step explanation:

Entry of Payment

Date Account Title and Explanation Debit Credit

Mar 31. Note Payable $51,873

Interest expenses $259

($51,873 * 6% * 30/360)

Cash $52,132

(TO record payment)

User Abayer
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