Multiple Choice Question

A company issues $$90,000$ of $5\%,5-$year bonds dated January $1$ that pay interest semiannually on June $30$ and December $31$ each year.

If the issuer accepts $$95,000$ for the bonds, the issuer will record the sale with a $($debit$/$credit$)$

Bonds Payable in the amount of $$5,000.$

to $($Discount$/$Premium$)$

credit; Premium

debit; Premium

debit; Discount

credit; Discount

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