Vast Company Signed a 180-Day Note, Dated March 1, for $4,500

Multiple Choice

Vast Company signed a 180-day note, dated March 1, for $4,500 that Rationale Bank discounted at 10 percent. Which of the following journal entries records the payment of the note to the bank at maturity for Vast Company?

A) Debit Notes Payable by $4,275; credit Cash by $4,275
B) Debit Notes Payable by $4,500; credit Cash by $4,500
C) Debit Interest Expense by $225; credit Cash by $225
D) Debit Notes Payable by $4,275, Interest Expense by $225; credit Cash by $4,500