Question: The Discount on Notes Payable: a. Is a contra liability account. b. Is a contingent liability account. c. Should be reported as an asset because

The Discount on Notes Payable:

a. Is a contra liability account.

b. Is a contingent liability account.

c. Should be reported as an asset because of its debit balance.

d. Is amortized to reduce interest expense over the life of the note payable.

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