Question

A company issues a 5-year bond with a $7,500 discount. Using straight-line amortization, the company should:

A) debit Discount on Bonds Payable for $1,500 per year.

B) credit Discount on Bonds Payable for $1,500 per year.

C) debit Interest Payable for $1,500 per year.

D) credit Interest Expense for $1,500 per year.

Answer

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