Question: The account Discount on Notes Payable: A.is recorded only when the note has a stated interest rate. B. represents future interest expense which will be

The account Discount on Notes Payable:

A.is recorded only when the note has a stated interest rate.

B. represents future interest expense which will be incurred over the life of the note

C.usually has a credit balance and is added to the Notes Payable account.

D.None of these.

E.is amortized over the life of the note by a transfer to interest revenue.

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