On November 1, 2017, Best Corp

Multiple Choice

On November 1, 2017, Best Corp.signed a three-month, zero-interest-bearing note for the purchase of $80,000 of inventory.The maturity value of the note was $81,200, based on the bank's discount rate of 6%.The adjusting entry prepared on December 31, 2017 in connection with this note will include a

A) debit to Note Payable for $800.
B) credit to Note Payable for $800.
C) debit to Interest Expense for $1,200.
D) credit to Interest Expense for $800.