Question: Record the interest expense on the short-term note payable. On December 26, $30,000 was borrowed for 60 days on a discounted basis (discount rate 12.0%)

Record the interest expense on the short-term note payable. On December 26, $30,000 was borrowed for 60 days on a discounted basis (discount rate 12.0%) and $600 was debited to the Discount on Notes Payable account. Record the five days of accrued interest on this note payable. The Discount on Notes Payable account will be credited on this adjusting entry. JOURNAL ETNRY

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