A Firm Repays $4000 of an Existing Bank Loan

Multiple Choice

A firm repays $4000 of an existing bank loan. The transaction is recorded as which of the following entries?

A) DR Bank loan $4000; CR Owner's capital $4000
B) DR Cash at bank $4000; CR Accounts receivable $4000
C) DR Cash at bank $4000; CR Bank loan $4000
D) DR Bank loan $4000; CR Cash at bank $4000