When Reversing Entries Are Used and a Note Payable That

Multiple Choice

When reversing entries are used and a note payable that was signed in a previous fiscal period is paid,

A) Interest Payable is credited for the amount of interest incurred in the current fiscal year.
B) Interest Payable is credited for the total amount of interest incurred during the full term of the note.
C) Interest Expense is debited for the amount of interest incurred in the current fiscal year.
D) Interest Expense is debited for the total amount of interest incurred during the full term of the note.