On April 1, 2007, Matterhorn Company purchased merchandise by issuing a $41,000, 8%, three month note to the supplier. The entry on July 1, 2007 to record the payment of principal and interest would include:

a. a debit to interest expense for $820.

b. a debit to interest payable for $820.

c. a credit to cash for $41,000.

d. a debit to interest expense for $3,280.

Answer rating: 100% (QA)

a a debit to interest expense for 820 ... View the full answer