Keith Company paid Major Company for merchandise with a $8,000, 60-day, 9% note dated April 1. If Keith Company pays the note at maturity, what entry should Major make at that time?

Select one:
A.
Notes payable
8,000

Interest expense
720


Cash

8,720

B.
Cash
8,720


Interest income

720

Notes receivable

8,000

C.
Notes payable
7,880

Interest expense
120


Cash

8,000

D.
Cash
8,120


Interest income

120

Notes receivable

8,000

D.
Cash
8,120


Interest income

120

Notes receivable

8,000

Business

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