A Firm Purchased Equipment for $6,000 on Credit and Issued

Multiple Choice

A firm purchased equipment for $6,000 on credit and issued a 120-day note bearing interest at 9 percent a year as evidence of the debt. To record this transaction, the accountant would debit

A) Equipment for $6,000 and credit Notes Payable for $6,000.
B) Equipment for $6,180, credit Interest Expense for $180, and credit Notes Payable for $6,000.
C) Equipment for $6,000, debit Interest Expense for $180, and credit Notes Payable for $6,180.
D) Equipment for $6,000 and credit Accounts Payable for $6,000.