On December 1, 2019 Zingo Inc. made a $100,000 payment to Big Boy Banking. The payment was for a $90,000 loan that Zingo received from Big Boy, 6 months ago. Which option below best represents the recording of this transaction for Zingo?

• Debit cash $100,000; credit notes payable $100,000
• Debit interest expense $10,000; debit notes payable $90,000; credit cash $100,000
• Debit notes payable $100,000; credit cash $100,000
• Debit interest expense $10,000; debit notes payable $100,000; credit cash $90,000

Answer rating: 100% (QA)

Answer 2nd option Debit Interest ... View the full answer