A Company Issues a 5-Year Bond with a $7,500 Discount

Multiple Choice

A company issues a 5-year bond with a $7,500 discount. Using straight-line amortization, the company should:

A) debit discount on bonds payable for $1,500 per year.
B) credit discount on bonds payable for $1,500 per year.
C) debit interest payable for $1,500 per year.
D) credit interest payable for $1,500 per year.