A Bank Loaned Shrugg Stone Company $35,000 on a 1-Year,6

Multiple Choice

A bank loaned Shrugg Stone Company $35,000 on a 1-year,6% note,but deducted the interest in advance.The journal entry made by Shrugg Stone to record receipt of the cash would include an

A) increase in Cash for $35,000.
B) decrease in Notes Payable for $32,900.
C) increase in Discount on Notes Payable for $2,100.
D) increase in Interest Revenue for $2,100.