On September 1,Knack Company Signed a $50,000,90-Day,5% Note Payable with Central

Multiple Choice

On September 1,Knack Company signed a $50,000,90-day,5% note payable with Central Savings Bank.What is the journal entry that should be recorded by Knack upon maturity of the note?

A) Debit Interest Expense $625;credit Interest Payable $625.
B) Debit Notes Payable $50,000;credit Interest Revenue $625;credit Cash $49,375.
C) Debit Cash $50,625;credit Notes Receivable $50,625.
D) Debit Notes Payable $50,625;credit Cash $50,625.
E) Debit Notes Payable $50,000;debit Interest Expense $625;credit Cash $50,625.