On November 1, Greenfield Corporation Borrowed $55,000 from a Bank

Multiple Choice

On November 1, Greenfield Corporation borrowed $55,000 from a bank and signed a 12%, 90-day note payable in the amount of $55,000.If you assume 360 days in year, the November 30 adjusting entry will be:

A) Debit Interest Expense $550 and credit Cash $550.
B) Debit Discount on Notes Payable $1,100 and credit Interest Payable $1,100.
C) Debit Interest Expense $550 and credit Interest Payable $550.
D) Debit Interest Expense $550 and credit Notes Payable $550.