Betty's Boutique Discounts Its Own 120-Day,6%,$25,000 Note Payable at a Bank.It

Betty's Boutique discounts its own 120-day,6%,$25,000 note payable at a bank.It records the proceeds as:

A) debit Cash $24,500; debit Discounts on Notes Payable $500; credit Notes Payable $25,000.
B) debit Cash $25,000; credit Notes Payable $25,000.
C) debit Cash $23,500; debit Discount on Notes Payable $1,500; credit Notes Payable $25,000.
D) debit Cash $24,500; credit Notes Payable $24,500.

Correct Answer:

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