Rolling Hills Company paid at maturity a note given to Alpine Manufacturing, $10,000, 120 days, 6 percent. The journal entry for payment would include a

a. debit to Notes Payable, $10,200.
b. credit to Cash, $10,000.
c. credit to Cash, $10,600.
d. debit to Interest Expense, $200.

Ans: d. debit to Interest Expense, $200.

Business

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