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 Expense for $1,500 per year.