A Firm Purchased Equipment for $12,000 on Credit and Issued

Multiple Choice

A firm purchased equipment for $12,000 on credit and issued a 120-day note bearing interest at 9 percent a year as evidence of the debt.To record this transaction,the accountant would debit

A) Equipment for $12,000 and credit Accounts Payable for $12,000.
B) Equipment for $12,000 and credit Notes Payable for $12,000.
C) Equipment for $12,360,credit Interest Expense for $360,and credit Notes Payable for $12,000.
D) Equipment for $12,000,debit Interest Expense for $360,and credit Notes Payable for $12,360.